To take your ideas to Policymakers, Join the Campaign of #PolicyPulse Write to feedback@policypulse.com

‘Economic growth picked up pace at beginning of 2016’

A shy recovery in agricultural sector and a steady performance in services sector are main drivers

Policy Pulse
Publish Date: May 27 2016 1:18PM | Updated Date: May 27 2016 1:22PM

‘Economic growth picked up pace at beginning of 2016’

 India's economic growth increased slightly at beginning of this yearcon stronger demand, a poll by Reuters news agency has found, even though recent surveys of purchasing managers suggest it lost some momentum going into April.

 
Poll of some economists predicted gross domestic product increased 7.5 percent January-March, faster than the earlier quarter's 7.3 percent but still well short of the recent peak of 8.3 percent in mid-2014. 
 
A shy recovery in the agricultural sector and a steady performance in services sector are main drivers, Rishi Shah, an economist at Deloitte said. 
 
Only three respondents - IHS Global Insight, DBS Bank and ZyFin Research said growth slowed in the Jan-March quarter. 
 
Forecasts in the poll ranged from 6.9 to 7.8 percent. 
 
While the median is still higher than China's first quarter rate of 6.7 percent year-on-year, there are signs India's economy might also face a few wobbles ahead. 
 
Exports dipped for 17th consecutive month in April on muted global demand. Business activity at manufacturing and services firms also slowed during the same month, again on declining domestic and foreign demand. 
 
Reserve Bank of India Governor Raghuram Rajan also warned of challenges ahead on Thursday. 
 
Hee said a sharp slowdown in China has potential to spill over in other countries, including India.