New Delhi, Aug 30
Riding against all odds, India’s gross domestic product (GDP) is projected to grow 6.5 per cent this fiscal with downside risks from the US tariff hikes, according to Crisil.
India’s real GDP growth accelerated 7.8 per cent year-on-year in the first quarter of this fiscal, from 7.4 per cent the fourth quarter of last fiscal.
“Growth on the supply side rebounded 7.6 per cent, driven by the services sector, with a statistical low-base effect coming into play as well. The manufacturing sector gained from lower input costs amid rising domestic demand and advanced export shipments,” said Dipti Deshpande, Principal Economist, Crisil.
Consumer demand — buoyed by healthy rural incomes, lower inflation and interest rates and income tax relief — is expected to remain robust in the coming quarters and support overall GDP growth, while healthy government investment spending should continue to provide buffer.