Samvat 2079 | GDP growth trend appears to be better than feared: Neelkanth Mishra
According to Neelkanth Mishra, the GDP growth trends appears to be better than feared. Many volume indicators show 3-year CAGR in Q2 GDP more than 2 percent currently expected by consensus.
Neelkanth Mishra, Co-Head of Equity Strategy, Asia Pacific and India Equity Strategist, Securities Research at Credit Suisse on Friday said that India’s gross domestic product (GDP) growth trend appears to be better than feared.
"The current economic growth rate is at 9 percent and slowing down means it could be at 7 percent," he told CNBC-TV18.
He said that recovery from pandemic has been decent.
"Also, the economic pace which we are seeing now is much better than what expected," he added.
According to him, many volume indicators show 3-year CAGR in Q2 GDP more than 2 percent currently expected by consensus.
From a medium term perspective, he said that there are several drivers of growth.
"Construction cycle is improving and real estate inventory is low. Bank results have been good this earnings season. India’s critical services sector has not yet started to slow down. Significant improvement can be seen in infrastructure," he told CNBC-TV18.
However, he added that there could be some impact of the global growth slowdown.
"We will be impacted by interest rate hikes seen in the country," he said.
Also, he believes that growth may slow further due to weakness in services exports.
"Falling global goods prices may ease balance of payments adjustment. With rupee falling, balance of payments adjustment is now underway," he added.
For more details, watch the accompanying video
(Edited by : Anshul)
First Published: Oct 21, 2022 3:24 PM IST
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