Factory production fell due to high prices and high-interest rates. As a result, the country’s financial growth rate fell to 6.3% in July-September. It was 8.4% at the same time last year. It touched 13.5% in the first three months of the current financial year.
RBI has continuously hiked interest rates to control inflation. As a result, the cost of borrowing for the industry has increased. According to economists, this has led to a slowdown in financial growth. The proof of this is that the growth rate of factory production in the September quarter has decreased compared to April-June. They claim that the GDP growth was very low in April-June last year due to Corona. From his point of view, the GDP growth rate has shown higher in those three months of this year. The advantage of that low base did not materialize in July-September.
Growth rate
The growth in the first six months of the fiscal year on a two-quarter basis is 9.7%. But economists fear that it may fall further in the last six months due to inflation and interest rates.
That the fear is not unfounded is clear in the infrastructure growth statistics released by the Center yesterday. This means eight core infrastructure sectors grew by 0.1% last month. Minimum in twenty months. In September it was 7 points to 8%. Crude oil, natural gas, refinery products, and cement production decreased.
Aditi Nair, the chief economist at consultancy Icra, said, “Growth has been boosted mainly by spending on purchases. But expenditure in the revenue sector, excluding interest, has declined.” Finance Minister Nirmala Sitharaman said yesterday that she will increase infrastructure spending in the next budget like the last two times. He claimed that there are signs of private investment coming. But former finance minister P Chidambaram complained, “The investment climate has deteriorated. There is less appetite for new investment. Perhaps more investment is now needed to drive fiscal growth.”
RBI said the growth will stand at 4.6% in October-December and January-March. But former finance secretary Subhash Chandra Garg said, “This time it will be less than 4.5%. Only annual growth in three years is putting India’s economy in a new low-growth trap. Identify the problem and reform before it’s too late.” However, the Center’s Chief Financial Adviser V Ananth Nageswaran claims the country will reach 6.8% to 7% growth this fiscal year. But according to Chidambaram, “GDP will come down a lot in October-December.
Sensex at 63 thousand
Strong stock indices around the world and investment by foreign investment companies in the country’s market pushed the Sensex past 63,000 for the first time on Wednesday. 417 points 81 points up and the index stopped at 63 thousand 099.65. Its all-time high in trading is 63,303.01. Nifty also touched a record average of 18758.35. The market rose for seven days with this. On this day, the price of money has increased a lot. One dollar was reduced by 41 paise to 81.31 rupees.