National accounts data for the June 2016 quarter showed a sharp slide in gross domestic product (GDP) at market prices. The key underlying message is that public capex support is unable to address the aggregate investment decline even as fiscal spaces narrow and consumer spending slows. Private consumption softened to 6.7% (8.3% previous quarter), raising questions if the year-long strength is finally beginning to ebb. Into the next quarter, fiscal space for capital expenditures is likely to shrink more. Quick action in awarding projects, giving out contracts is therefore, required for growth support in the coming months.

Source: Mint September 06, 2016 12:11 UTC