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Mumbai: The Indian economy is likely to sustain the growth momentum of the January-March quarter in the three months through June as private consumption grows and manufacturing and services pick up pace, Reserve Bank of India (RBI) officials said..
If the optimism of the central bank officials borne out in RBI's June bulletin bears fruit, growth prospects for the June quarter may be brighter than the 7.3% projected by its monetary policy committee on 7 June..
In the years since the covid-19 pandemic, Indias growth trajectory is seen to be shifting upwards from the 2003-19 average of 7% to the 2021-24 average of 8% or even more, powered by domestic drivers, the article said..
More recent indicators suggest that private consumption is resuming its role as the main driver of demand and is getting broad-based to include rural consumers," it said, adding that the fast-moving consumer goods (FMCG) sector is gearing up for a strong turnaround on expectations of a pick-up in public welfare spending...
While GDP growth of 7.3% (MPC estimate) is very encouraging, the rising divergence between GVA and GDP needs closer focus because the GVA trends are suggesting some amount of cooling in agriculture and services, while industry has been doing well," said Debopam Chaudhuri, chief economist, Piramal Enterprises..
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