Gross Domestic Product (GDP) for the April-June quarter grew a better-than-expected 5.5%, after eight successive quarters of declining growth. A CNBC-TV18 poll had estimated that quarterly GDP would grow 5.3%. However, the slight improvement in the figured failed to enthuse the market.
In an exclusive interview to CNBC-TV18, chairman of Prime Minister's Economic Advisory Council C Rangarajan termed the figure as a "reasonable growth".
The PMEAC has forecast the Indian economy to grow 6.7% this fiscal, and is maintaining that estimate.
"The growth of Indian economy will pick up in the second half on the back of industrial production," he said.
However, most economists think that is a tall order. Services sector growth continued to slide, and the gross capital formation, and private consumption numbers too were muted. Also, the impact of deficient rainfall will reflect in the second quarter numbers.
The RBI has already made it clear that it will not reduce interest rates till inflation is tamed.
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