Inflation is likely to be brought within the target rate in the last quarter, the economist said
In a panel discussion on CNBC-TV18, Pronab Sen, Former Chief Statistician of India said that formal sector data is used as a proxy to estimate the informal sector data, hence even though the informal sector was hit harder due to demonetisation the numbers don't seem to reflect it.
DK Joshi, Chief Economist, CRISIL is also not surprised at the negative IIP number for December and expects the weakness to continue over the next 2-3 months.
IMF cutting its GDP growth expectations to 6.6 percent is not out of place, he says. The cut could have been bigger. He himself expects a GDP growth of 6.5 percent.
Good Budget and interest rate cuts can drive the growth in next quarter, DK Joshi, Chief Economist at Crisil Ratings said. While growth has been impacted, same can‘t be said for the growth trend.
Reacting to CPI inflation data, top economists say it is much in line with expectation and they see no reason for the numbers to exceed 5 percent as had been cautioned by the Reserve Bank.
A bench headed by NGT Chairperson Justice Swatanter Kumar also directed ADA to inform it about the mechanism adopted by the builders for collection and disposal of Municipal Solid Waste.
Joshi said the services sector was expected to grow 9.8 percent this year, and that a recovery in consumption could be delayed
The Central Statistical Organisation (CSO) has recently introduced a new series of national accounts with 2011-12 as base year from 2004-05 and even revised the methodology for measuring economic growth
Leading economists said the RBI decision to keep the key policy rates unchanged was on expected lines and expressed hope that with inflation now treading down it would change its policy stance by next month.
DK Joshi, chief economist at CRISIL says the current monsoon situation in the country is similar to the drought of 2009.