Ahead of the release of Gross Domestic Product (GDP) data by Central Statistics Office, the State Bank of India (SBI) Research in its latest report has said that Indian economy is likely to grow in the range of 6.5-7 percent during the third quarter of the current fiscal year 2017-18. It also said that the country’s economy in fourth quarter of FY18 may grow by 7 percent. Besides, the country’s GDP grew by 6.3 percent in Q2 FY18, up from 5.7 percent in the Q1 FY18.
According to the SBI’s research report Ecowrap, the yearly SBI Composite Index for February 2018 is at 33-month high at 55.0 (moderate growth), compared to 52.1 (moderate growth) in January 2018. It also expects that manufacturing Gross Value Added (GVA) would be in the range of 8-10 percent for the Q3 FY18, if the current trend persists for remaining companies also. It added that a synchronised global growth coupled with an uptick in commodity cycle will also help sectors like metals, textiles and sugar.
However, the report warned that the recent developments in the financial markets may restrict the further growth of the Indian economy. SBI Research expects that it to be a passing phase in business cycle. Besides, the financial markets have been impacted following a Rs 11,400 crore fraud at India’s second largest bank Punjab National Bank (PNB).
