The economy remains under considerable stress and the government now expects no fireworks from the first quarter GDP numbers. Government sources tell CNBC-TV18's Aakansha Sethi that the growth rate for the April to June quarter will be below 5 percent.
Excise has actually registered a decline of 13 percent year-on-year for April to July period. Service taxes registered an increase of only 13 percent, whereas the projected increase was 30 percent. So it is almost one-third of what was projected. Given both these figures agriculture may see some uptick but Index of Industrial Production (IIP) again has seen a decline for the last two months. Sources say the government does not expect GDP growth to be beyond 4.5-4.8 percent.
The Finance Minister, however, on Friday did say that wait for the GDP numbers. Sources in the Department of Economic Affairs (DEA) told CNBC-TV18 that it could a positive surprise. The GDP figures are due on August 30. Also Read: RBI must stop defending rupee, cut rates for growth: Ambit
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