The annual economic growth of India decreased to about 4.5% in the July to September period, which would mark the slowest pace for the country since 2013. The probability of an interest rate cut is quite likely when the bank meets the following week.
Chief Economic Advisor (CEA) K.V. Subramanian expects that the country’s gross domestic product (GDP) is probable to rising in the third quarter of the current financial.
“We are saying again that the fundamentals of the Indian economy continue to be strong. GDP is expected to pick in the quarter three,” according to him.
Department of Economic Affairs (DEA) Secretary Atanu Chakraborty stated equity capital flows are a plus this year.
On the other hand, government data states the eight-core industries displayed a 5.8% decline in October compared to the 5.2% decrease in September.
The combined index of eight core industries was 127 in October 2019 which decreased by 5.8% in comparison to the index of October 2018. The cumulative growth from April to October 2019-20 was 0.2%, according to an official statement by the Ministry of Commerce and Industry.
The index of eight core industries consists of coal, crude oil, natural gas, steel, cement, electricity, fertiliser, and refinery products. The index makes up 40.27% of the Index of Industrial Production (IIP).
In October, the production of coal fell by 17.6% as opposed to the de-growth of 20.5%. The index in addition was bogged down by electricity which reported a drop of 12.4% compared September’s drop of 3.7%
Production of crude oil fell by by 5.1% in October 2019 over the same month of last year. Cement production too dropped by 7.7% but production of fertilizers rose up by 11.8%. Petroleum refinery production too rose slightly by 0.4%.