‘India’s Q2 GDP likely to have grown by 4.5%’

The overall GDP growth in India is expected to have grown at around 4.5 per cent during the second quarter of this financial year and is further likely to remain weak during the remaining fiscal, says a Dun & Bradstreet report.

The country’s economic growth rate in the second quarter of this fiscal (July-September) period is likely to be around 4.5 per cent.

This is a tad higher than the economic growth registered in the April-June quarter of this fiscal (4.4 per cent).

“With almost three quarters of FY14 behind us, inflationary pressures remain unabated, manufacturing sector fails to revive, fiscal deficit continues to rise and the domestic private sector consumption continues to weaken,” Dun and Bradstreet India senior economist Arun Singh said.

Mr. Singh further noted that “overall GDP is expected to have grown at around 4.5 per cent during Q2 FY14 and is further likely to remain weak during the remaining fiscal year.”

On rupee, the report said that the Indian currency is likely to remain under pressure primarily owing to the speculation regarding the US Federal Reserve scaling back its stimulus besides oil related dollar demand.

“D&B expects the rupee to average at around 62.60-62.80 per USD during November 2013,” it said.