Moderate improvement in Q1 growth trends

NEW DELHI: The Indian economy witnessed a moderate improvement in growth trends in terms of production during the first quarter ending June over the corresponding quarter a year ago, industry chamber CII said on Sunday citing its joint survey conducted with ASCON.

The Confederation of Indian Industry (CII)-ASCON survey tracking the performance of 70 sectors in the April-June quarter said domestic demand and investment will be supported by better consumption patterns due to the favourable monsoon, moderation in inflation and the onset of the festive season, a statement said. “The ASCON Q1 FY19 Survey results reflect steady progress in economic growth. What is especially significant is that there has been a perceptible increase in the share of sectors recording higher growth,” CII Director General Chandrajit said.

Fewer sectors are anticipating negative growth trends, which clearly points towards improvement in the economic environment, he said. The survey classifies growth trends across four broad categories - Excellent (over 20 per cent), High (10-20 per cent), Moderate (0-10 per cent) and Low (below 0 per cent), the statement said.

The survey showed a sharp increase in the sectors witnessing ‘excellent’ growth during April-June 2018, over the same period a year ago, with the share of such sectors improving to 14.3 per cent in the first quarter, from 5.7 per cent earlier.

The share of sectors recording ‘high’ and ‘moderate‘ growth improved marginally during the quarter in review, while the share of sectors witnessing ‘low’ growth (below) has come down substantially. While the share of sectors registering ‘high’ growth improved to 21.4 per cent in the first quarter, from 20 per cent last year, sectors witnessing ‘moderate’ (0-10 per cent) growth improved to 44.3 per cent from 42.9 per cent earlier. The share of sectors witnessing ‘low’ growth has come down substantially to 20 per cent as compared to 31.4 per cent recorded earlier. Sectors which have registered excellent growth include commercial vehicles, three wheelers, construction equipment machinery, soya oil, tractors and sugar. (IANS)