Flagging weak consumption demand as a key vulnerability for growth in the second half of the current fiscal as well as the next financial year, Shashanka Bhide, one of the three external members of the Monetary Policy Committee (MPC) has said 'The September quarter growth at 7.6 per cent was significantly more than what we were expecting. But these numbers, even when they are more positive or favourable, require far more concern.'
Bhide went onto buttress his growth concerns to the falling global growth as well and said 'we also obviously do not see external demand being the major driver of the economy. On the supply side, we've had weak monsoons this year and this has certain implications to agricultural growth and rural demand. Then there is also the issue of great global uncertainties.'
Bhide further said 'all growth engines of the economy are also not firing from all cylinders now, leading some to wonder whether those drivers that are doing well alone can sustain higher growth. On the lingering conflict in the Middle East, he said these conflicts have the potential to affect supply-chains globally.
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