Why is it in the news?
- In a recently released ICRA report(20th Nov), Higher fuel prices and the weak rupee were pointed out as the primary factors dragging the industrial growth.
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The agency(ICRA) said it expected GDP and Gross Value Added (GVA) growth to be 7.2% and 7.1%, respectively, in the second quarter of this financial year, down from the 8.2% and 8% respectively in the first quarter.
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After the strong upswing in the April-June quarter, GDP growth for July-September is expected to dip due to sluggishness in agriculture too.
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Higher fuel prices and the weak rupee were pointed out as the primary factors dragging the industrial growth.
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An uneven and sub-par monsoon, flooding in some areas amid a late withdrawal of the monsoon rains, and instances of crop damage and pest attacks will impact the farm sector.
Services sector
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Services sector growth is expected to rebound to about 7.8% in the second quarter from 7.3% in the first quarter.
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Factors :1. A sharp pickup in the expansion in the government’s non-interest revenue expenditure.2. A rise in growth of bank deposits.3. Air and ports cargo traffic.4. A a moderation in the pace of FII outflows.
Source
The Hindu.