NEW DELHI :
India’s economic or GDP growth expanded at an annual pace of 4.7% in the quarter ended December 31, in line with analyst estimates. The median forecast of a Reuters poll of economists put annual economic growth at 4.7%. India’s economy had grown at a revised 5.1% in the September quarter.
Analysts caution that growth would be muted this current quarter due to the downside risks to global growth as a result of the coronavirus epidemic, the full effects of which are still uncertain and unfolding. Goldman Sachs has cut its growth forecast to 4.9% for the March quarter from earlier estimate of 5.4%.
The government estimates economic growth in the current fiscal year ending in March to be at 5%, the lowest for 11 years, as compared to 6.1% in 2018-19.
And the government targets a slight recovery in growth to 6% for 2020/21.
Separately, data released today showed India’s infrastructure output grew 2.2% in January from a year earlier. During April-January, output rose 0.6% from the year-ago period, according to the data.
Infrastructure output, which comprises eight sectors such as coal, crude oil and electricity, accounts for nearly 40% of the country’s industrial output.
Another set of data released today showed India’s fiscal deficit in the first 10 months through January stood at ₹9.85 lakh crore, or 128.5% of the revised budgeted target for the current fiscal year, government data showed on Friday.
Earlier this month, the Indian government revised the fiscal deficit target for the current financial year that runs through March to 3.8% of gross domestic product (GDP) from 3.3%, due to weak revenue collection. (With Agency Inputs)