{"id":35353,"date":"2018-10-31T16:39:53","date_gmt":"2018-10-31T11:09:53","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=35353"},"modified":"2018-10-31T16:39:53","modified_gmt":"2018-10-31T11:09:53","slug":"gdp-growth-boards-slow-train-at-5-7","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/gdp-growth-boards-slow-train-at-5-7\/","title":{"rendered":"GDP growth boards slow train at 5.7%:"},"content":{"rendered":"<p><span style=\"color: #000000;\"><a href=\"http:\/\/www.thehindu.com\/todays-paper\/gdp-growth-boards-slow-train-at-57\/article19597600.ece\"><span style=\"font-weight: 400;\">GDP growth boards slow train at 5.7%<\/span><\/a><span style=\"font-weight: 400;\">:<\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><b>Context<\/b><\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400; color: #000000;\">India\u2019s GDP grew at 5.7% between April to June this year, considered the slowest pace recorded in 13 quarters or since the NDA government assumed office in May 2014.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><b>The slagging of GDP growth.<\/b><\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400; color: #000000;\">It was led by a sharp decline in industrial activity ascribed largely to an inventory drawdown by firms ahead of the rollout of GST from July 1.<\/span><\/li>\n<li><span style=\"font-weight: 400; color: #000000;\">GDP growth in the last quarter of 2016-17 was 6.1%, marking a steady decline from the 7.9% clocked in the April to June quarter.<\/span><\/li>\n<li><span style=\"font-weight: 400; color: #000000;\">The gross value added (GVA) in the economy grew at 5.6%, same as the previous quarter but sharply lower than the 7.6% growth in the first quarter of the last year.<\/span><\/li>\n<li><span style=\"font-weight: 400; color: #000000;\">It is the sixth continuous quarter marking a decline in growth.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><b>Effect on Industrial sector<\/b><\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400; color: #000000;\">The major decline in growth is on account of industry, which comes in at 1.6% compared to 7.4% last year.<\/span><\/li>\n<li><span style=\"font-weight: 400; color: #000000;\">Industrial output grew by 3.1% in the previous quarter, one of the worst quarter for the manufacturing sector in five years.<\/span><\/li>\n<li><span style=\"font-weight: 400; color: #000000;\">Most part of this dip was due to the rise in input costs as well as an unprecedented \u201chigh level of inventory de-accumulation\u201d in the first quarter.<\/span><\/li>\n<li><span style=\"font-weight: 400; color: #000000;\">Firms were then worried if the GST regime would grant them input tax credits for output generated before its implementation.<\/span><\/li>\n<li><span style=\"font-weight: 400; color: #000000;\">With this anticipation of the GST price-levelling effects, there are chances of revival in the stocks in the second quarter.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><b>What needs to be taken care of?<\/b><\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400; color: #000000;\">While interpreting the manufacturing data, the negative wholesale price inflation (WPI) trends should be kept in check.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><b>Service sector<\/b><\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400; color: #000000;\">The services sector did fairly well, growing at 8.7% compared to 9% in the same quarter last year, the gross value added by the agriculture sector dipped from 2.5% in the first quarter of last year to 2.3%.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>GDP growth boards slow train at 5.7%: Context India\u2019s GDP grew at 5.7% between April to June this year, considered the slowest pace recorded in 13 quarters or since the NDA government assumed office in May 2014. The slagging of GDP growth. It was led by a sharp decline in industrial activity ascribed largely to&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/gdp-growth-boards-slow-train-at-5-7\/\">Continue reading <span class=\"screen-reader-text\">GDP growth boards slow train at 5.7%:<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-35353","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704840149},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=35353"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35353\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=35353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=35353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=35353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}