无锡亚博兰机械设备有限公司
Wuxi Ybolan Machinery & Equipment CO.,LTD
Home > News > Content
Growth May Turn A Corner In The Second Quarter
Sep 12, 2018

Growth may turn a corner in the second quarter


Core note: India's economic growth has accelerated for five quarters in a row since last April.

In the first quarter of this fiscal year (april-june) India's economy grew by a hefty 8.2%.

But the steady acceleration is likely to come to an inflection point in the second quarter of the fiscal year (july-september), with growth slowing markedly.

Since April last year, India's economic growth has accelerated for five consecutive quarters.

In the first quarter of this fiscal year (april-june) India's economy grew by a hefty 8.2%.

But the steady acceleration is likely to come to an inflection point in the second quarter of the fiscal year (july-september), with growth slowing markedly.

The first is that the impact of two successive rate hikes will begin to show.

The reserve bank of India (rbi) has raised the repo rate by 25 basis points to 6.5% at its bi-monthly monetary policy meeting from July 30 to August 1.

It is the second time this year that the reserve bank of India has raised interest rates.

At its June monetary policy meeting, the reserve bank of India raised interest rates by 25 basis points for the first time in four years.

The two successive increases in interest rates by the reserve bank of India will dampen the upward trend in economic growth.

The increase in the repo rate will lead to increased lending rates and bank prepayments, which will have a significant impact on small and medium-sized enterprises in India.

Higher interest rates will also affect personal consumption and housing sales will therefore be affected by the rate hike.

Edelweiss, an Indian investment research firm based in mumbai, points out that the slump is visible in private spending.

The August rate hike will further hit private consumption.

The second is rising oil prices.

The rise in international crude oil prices has not only pushed down the rupee against the dollar, but also pushed the retail price of gasoline and diesel to new highs.

Retail petrol prices in mumbai rose to rs88.26 per litre on Friday.

Protests continue in India over high oil prices.

The cost of living and production in India will rise further, driven by high oil prices.

Business was cautious about future market developments in June, and business confidence fell to its lowest level since October as the pace of inflation in manufacturing input costs increased.

Finally, a slowdown in the world economy would dampen India's export growth.

India's economy grew by 8.2% in the first quarter of this fiscal year.

The data showed that India's exports increased by 14.23 percent year-on-year in the april-july period.

That is significantly higher than the 9.8 per cent growth rate in the previous fiscal year.

However, with the further tension of sino-us trade friction and the further enhancement of us trade protectionism, India's foreign trade development will inevitably be affected.

Those factors have led some analysts to see India's growth rate slowing.

Motilal Oswal, a market analyst, said in a report that India's GDP growth will remain strong in the first quarter of the fiscal year (april-june), but growth will peak in the first quarter and begin to weaken slowly in the second quarter.

A recent ubs report also said India's economic growth would slow to 7-7.3% in the fiscal second quarter.

That was down from 7.7 per cent and 8.2 per cent growth in the previous two quarters.

Market research also suggests this.

Although the nikkei index of Indian manufacturing, services and composite PMI was still expanding in July and August, Indian manufacturing and service companies were cautiously optimistic about future development due to factors such as rising oil prices.

The data showed that while India's economy continued to grow rapidly in the first quarter of the fiscal year that ended in June, weakness was already showing.

'the Indian economy is not performing well, we are in a state of uncertainty, where neither the central bank nor the government has provided any stimulus and the private sector is waiting for demand to pick up,' said Mr. Vias, managing director and chief executive of the center for economic monitoring.

Mr Vyas sees more than fatigue, but a high-growth malaise.


---Cora 0086 13952463646

---Wuxi Ybolan Machinery & Equipment Co.,LTD |A CNC metal machining factory in China, with a experienced machining team and best machining technology, to supply the best service for all clients.

---Email: cora07@sina.com