Welcoming this development, Bibek Debroy, Chairman of the Economic Advisory Council to Prime Minister (EAC-PM) attributed this positive trend to continued impetus on structural reforms and effective implementation of ongoing policy initiatives. He further stated that the focus on boosting capital spend in infrastructure sector and multiple initiatives to provide universal access to basic goods and services has not only contributed to this growth but has improved its quality as well.
He added that despite an uncertain international environment and volatile crude oil prices, India’s sustained growth reflects its strong resilience to adverse global conditions, because of strong economic fundamentals. The encouraging growth rates in agriculture, manufacturing and construction show that the growth momentum continues to be broad based. In addition, one also expects favourable monsoons to further boost agricultural output and rural consumption in the coming quarters.
India Inc lauds Q1 GDP growth data
“The GDP growth numbers for the first quarter of the current fiscal announced today are very encouraging and indicate a further strengthening of the improving trend witnessed over past few quarters. The recovery that is shaping up is broad based and there are clear signs of revival in domestic demand and investments. The double-digit growth in manufacturing comes on back of a low base but does reflect the positive momentum already seen in some of the key lead indicators of economic activity. Also, the forthcoming festive season is expected to bode well for our growth prospects going ahead” said Rashesh Shah, President, FICCI.
“While the latest growth numbers are quite robust, the volatility in oil prices and Rupee value is exerting some pressure on industry members. These two factors have emerged as the key macro-economic concerns on the horizon. Even as companies are looking at ways to mitigate the impact of the same, these factors can weigh heavy on our growth performance besides having clear implications on the current account and fiscal deficit. The evolving situation requires constant review and swift policy action and support both by the Central Bank and the Government of India. Further, as the global trade environment remains tricky, India should continue to undertake measures to support its exports”, added Shah.