Improving GDP growth: Angel Broking

Views of Mr. Jaikishan J Parmar (Research Analyst, Angel Broking):

"The GDP estimates for the third quarter came in at 7.2%. Over the last 2 quarters the quarterly GDP has grown from 5.7% in the first quarter and 6.5% in the second quarter. Agricultural growth lagged the previous year due to a higher base and a sub-par monsoon in 2017. Additionally, manufacturing growth was healthy from the organized sector but the SME and the unorganized sector grew at just about 3% due to the combined impact of GST and demonetization.

GDP growth is still being largely driven by government spending. The good news is that the construction sector, especially the commercial sector, is showing green shoots of recovery with a 300 basis points jump in growth. It is interesting that this growth has come despite the implementation of RERA. Additionally, construction growth is significant as it has strong externalities for downstream sectors. The fourth quarter GDP growth is likely to be above 7% and India may end the full year 2017-18 with a full-year GDP growth of around 6.6%."

Source : Equity Bulls

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