Q3 GDP growth likely 6.9%, best in 2017, says poll

Q3 GDP growth likely 6.9%, best in 2017, says poll

Context:

According to a Reuters poll, India’s economy grew at its fastest pace in a year in the October-December quarter as consumers, businesses and the government stepped up spending.

Details:

• Gross domestic product (GDP) grew 6.9% in the October-December quarter from a year earlier
• In July-September, the economy grew 6.3% annually
• Rupee strengthened 6.5% against the dollar in 2017
• India’s gross value-added (GVA)increased 6.6% from a year earlier in October-December from a year earlier, compared to 6.1% in the prior three months.

What does this imply?

This suggests that disruptions from a shock ban on high-value currency notes in November 2016 and the chaotic launch of a goods and services tax (GST) in July are fading.

Concerns over banking:

• There are concerns about the increase in non-performing assets of state-run banks
• Punjab National Bank, in February has revealed a loan fraud that’s the biggest in India’s banking history. The fraud has cast a shadow over the workings of state-run lenders, already reeling from accumulated bad loans