Moody's saw India's credit rating materialising in the medium term based on reforms
India's gross domestic product (GDP) slowed to 7.1 per cent for the first quarter of this fiscal, from 7.5 per cent in the like period of 2015-16, due mainly to lower activity in farm, mining and construction sectors, official data showed on Wednesday.
A slow and steady economic revival is seen
RBI has given a thumbs up to Jaitley's Budget
Government has marginally revised downward the economic growth for 2014-15 to 7.2 per cent from the earlier estimate of 7.3 per cent after factoring in latest data on agriculture and industrial production.
One good thing is that the core sector has managed to maintain the growth momentum.
The construction sector growth was at a disappointing 2.6 percent as against 8.7 percent in the previous quarter, underlining a week recovery in the growth despite the 7.4 percent growth.
Despite what the government machinery says, the RBI seems to know the actual state of the economy
With admitting the deflationary scenario, the government faces questions on its perception on the actual status of economic growth and the sharp divergence between WPI and CPI inflations
With the change in GDP and retail inflation measurement, it is no longer possible to base policy decisions purely on these numbers. Till the new indices stabilise and establish a predictable pattern, they have limited utility
FY15 GDP growth seen at 7.4 percent in the current fiscal as against 6.9 percent in 2013-14, according to government's advance estimates for GDP based on the new calculation methodology.