The record global growth of 4.5 per cent during this period was a rising tide lifting all boats. The slump in first quarter 2017-18 growth was mainly caused by the dip in manufacturing growth to 1.2 per cent. If global growth continues to improve and the domestic growth continues to falter, that would be a serious concern. Normally, improving global growth provides the tailwind for higher domestic growth through recovery in exports. India cannot sustain a growth rate of above 7 per cent without double-digit export growth.

Source: Economic Times October 07, 2017 04:51 UTC