5 days ago

Economy Shows Resilience as Growth Risks Continue to Loom

The country’s economy appears to be growing steadily.

The central bank expected growth of 7 per cent in the first quarter.

People are still buying vehicles and using electricity, which suggests household spending is healthy.

Tax collections and online shipping documents also remained strong.

Factories produced more goods, helping industrial production rise by 5.8 per cent.

Businesses in manufacturing and services also earned better operating profits.

Banks continued lending to companies and households.

Better monsoon conditions helped farmers sow kharif crops.

However, global conflicts, trade problems, supply shortages, changing energy prices and El Niño could slow growth.

Key facts

First-quarter growth projection: 7 per cent, according to the central bank’s August Monetary Policy Committee projection.
Industrial production: Rose 5.8 per cent during the quarter, aided by manufacturing.
Non-oil export growth: 12.8 per cent in the first four months of the year.
Public-sector capital expenditure: The Centre’s expenditure grew by roughly 24 per cent in the quarter.
Consumption indicators: E-way bills, GST revenues, passenger vehicle sales, tractor sales and two-wheeler sales remained strong.
Credit conditions: Bank credit growth increased briskly across industry and retail lending.
Key risks: Geopolitical and trade uncertainty, supply-chain pressures, volatile energy prices and a strengthening El Niño.

indianexpress.com · 5 days ago