INSUBCONTINENT EXCLUSIVE:
However, company expects the economy to grow at a higher rate of 7.7% in the first quarter of 2018.Global credit ratings, research, and risk
analysis firm Moody's Investors Service expects the Indian economy to grow by around 7.5 per cent in 2018 and 2019
However, the company expects the country's economy to grow at a higher rate of 7.7 per cent in the first quarter of 2018
"We expect the Indian economy to grow around 7.5 per cent in 2018 and 2019
Economic activity grew by 7.7 per cent in the first quarter of 2018," Moody's Investors Service said in its Global Macro Outlook: 2018-19
(August 2018 Update) report."High frequency indicators suggest a similar outturn for the second quarter
Growth is supported by strong urban and rural demand and improved industrial activity."According to the firm, PMI (Purchasing Managers
increase in the minimum support prices for kharif crops, should support rural demand," the report said."Thus, despite external headwinds
from higher oil prices and tightening financing conditions, growth prospects for the remainder of the year remain in line with the economy's
But core inflation has moved up in recent months to 6.2 per cent," the report said."The run up in energy prices over the past few months
will raise headline inflation temporarily
The impact on food inflation from increased procurement prices to farmers, will be mitigated somewhat by the expected rise in farm output
because of a good harvest."In addition, the company said that the upside to inflation comes from strengthening demand, which is reflected in
raised the benchmark repo rate by 25 basis points for the second time in two months to 6.5 per cent.(This story has not been edited by
TheIndianSubcontinent staff and is auto-generated from a syndicated feed.)
