Indian market witnessing great growth prospects in terms of industrial growth
There is news of relief on the two fronts for the Indian government that is constantly targeted for the falling economy. Industrial Growth in the country has been fastest in five months in August and retail inflation has remained steady in September. This has given the government double happiness. These figures have increased the expectation of recovery of the economy. In the June quarter, the country’s GDP growth was down by 5.7% in three years.
Apart from this, senior BJP leaders Yashwant Sinha and Arun Shourie had tweeted a blistering attack on the Modi government. Now this new development is going to be a comfort for the government. In August, the Index of Industrial Production (IIP) rose to 4.3%, while in June there was negative growth. At the same time, IIP grew by 0.9% in July. Inflation based on the Consumer Price Index was 3.28% in September, which is equal to August. The inflation rate was 3.5% and the industrial growth estimate was 2.5%.
Experts have welcomed these signs of economic recovery, but they say that it is not right to call it a turnaround right now. According to them, it will have to look at data for a few months. Saugata Bhattacharya, Chief Economist of Axis Bank, said, “These are the initial signs, which will remove the despair about the economy. It is a sign of turnaround in economic activity.” He said that primary goods and electricity have been a major contributor to the recovery of industrial growth.
Tushar Arora, senior economist at HDFC Bank, said, “Manufacturing growth has been better than expected, but we will not change our estimates right now.” This has increased due to the increase in stock after the introduction of the Favorable Base and GST in mining and electricity
Chief Economist Madan Sabnavis of Care Ratings said, “If three consecutive months of growth is strong, then it should be considered as a recovery. If it does not happen, then it will be considered as an impedance to increase the stock after GST is implemented.”