The Central Statistics Office has projected a real GDP growth of 7 per cent in its second advance estimate that it put out on February 28. The government’s optimism does not square with the fact that all the large global economies, including China, are exhibiting definite signs of a slowdown. The sharp slide in consumption in consumer staples has been attributed to weak farm income growth in the past year with agriculture sector growth slowing to 2.7 per cent from 5 per cent in 2017-18. However, back-to-back rate cuts and a slight uptick in inflation narrowed the spread to 3.14 per cent. The sluggish growth in the April-June quarter, the possibility of a weak monsoon, and uncertainty over the new government’s commitment to fiscal rectitude could complicate the situation.

Source: The Telegraph May 10, 2019 03:00 UTC