India's Gross Domestic Product (GDP) growth in the September quarter is expected to ease to 7.5-7.6% mainly due to slowdown in rural demand, a State Bank of India (SBI) research report said Monday. The GDP growth at constant prices (2011-12) was 8.2% in the April-June quarter of 2018-19.
The ‘SBI Ecowrap’ report said the SBI Composite Leading Indicator (CLI), a basket of 21 leading indicators for September quarter of the current fiscal, is showing a marginal declining trend. Consequently, the headline second quarter Gross Value Added (GVA) growth could be 7.3-7.4%, due to the slowing of rural demand, it said.
It noted that commercial vehicle sales, domestic air passenger traffic and cement production have maintained double-digit growth during July-September quarter. All these indicators pushed up GVA in the quarter. The monthly data of various indicators for October 2018 however suggest the GVA growth is slowing down due to decline in demand.