Growth rate of eight core industries slowed to 6.1 percent, CEA said - speed slowed due to elections
Growth: The growth rate of eight major core industries has come down to 6.1 percent in July. At the same time, Chief Economic Advisor (CEA) V Anant Nageshwaran said that the pace of development is strong. However, due to the Lok Sabha elections held in seven phases, the growth rate has slowed down.
Contraction in crude oil production, along with natural gas, has brought the growth rate of eight major core industries down to 6.1 percent in July. However, it is still more than 5.1 percent in June on a monthly basis. Data released on Friday revealed that coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and power sector produced at the rate of 8.5 percent in July 2023. According to Amar Ujala, crude oil production declined by 2.9 percent and natural gas by 1.3 percent in July. Basic industries production increased by 6.1 percent during the first four months of the current fiscal year.
CEA V Anantha Nageswaran said the leading indicator of growth momentum is strong. First-quarter growth rate fell because elections to the Lok Sabha were held in seven phases. Gross fixed capital formation in June stood at 34.8 percent of GDP in real terms. So, private investment is playing its role. Monsoon has progressed well. Corporate and bank balance sheets are in good shape.
Manoranjan Sharma, Chief Economist, Infomerics Ratings says, "These figures are completely in line with our expectations, we have kept our focus in the public domain. We had given a forecast of 6.8% and these figures have come to 6.7%."
He further said that if India is able to register a GDP growth of 7% on a consistent annual basis, then the country will be in a strong position.
