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CLSA: GDP Growth in April-June Quarter Might Be Sluggish

According to a recent report by CLSA, the gross domestic product (GDP) data for Q1 FY20, i.e. April-June may indicate a sluggish growth. The GDP data for Q1 FY20 will be released by the government at 5:30 p.m. today.

The brokerage added that the second quarter might also witness a downtrend in domestic demand on account of the poor monthly indicators. In the report, CLSA stated that the GDP was only ahead of the gross value added (GVA) growth by up to 0.3 percentage points during the last three years.

Also Read: How Urban GDP can make up to 70%-75% of India’s total GDP by 2020

CLSA also pointed out that the GVA growth in Q4 FY19 could be capped at 5.7%. According to the report, the automobile sector has experienced a significant blow in sales during the last few months. The industry witnessed sales of both automobiles and motorcycles drop by 26% and 13% year-on-year respectively.

Finance Minister Nirmala Sitharaman was also highly appreciated for the various measures announced to support the economy with additional liquidity. CLSA further added that the Centre would soon come up with a medium to provide credit to housing projects and infrastructure in the country.

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