NSO Set to Release April-June GDP on August 29; CNBC -TV18 Poll Pegs Growth at 6.8% – CNBC tv18

The National Statistics Office (NSO) will release India’s Gross Domestic Product (GDP) Data for the April – June Quarter of the Current Financial Year, on August 29. A CNBC-TV18 Poll Estimates The GDP growth for the Quarter at 6.8%.

GDP Growth of 6.8% would be stronger than 6.5% a year ago, Thought Lower Than 7.4% in the March Quarter. Despite the Dip, Markets are likely to view the number positively.

Gross Value Added (GVA) is expected at 6.5%, in line with last year. The numbers do not point to any major slowdown.

The Concern Lies with Nominal GDP, which measures output at current prises before adjusting for inflation. After adjusting, the figure is called real gdp.

According to the CNBC-TV18 Poll, nominal gdp is expected to grow at 8.2%, well below the union budget’s estimate of 10.1%, on which corporate earnings and tax estimates were based. Weaker Nominal Growth Indicates Companies are Struggling to Raise Pries, which could weigh on both earnings and tax collections.

At the sector level, Agriculture is expected to grow at 5.8%, Above Its long-term average of 3%. Industry is seen expanding 5.3%, which looks relatively weak due to a high base. Services are estimated at 7.1%, which is moderate.

The main driver behind the expected 6.8% GDP growth is Higher Government Capital Expenditure (CAPEX). The government spent more in the first three months compared to the same period last year, when election-Related Activity has been slowed experture. This, Along with some advance buying in expenses, has supported growth.

However, Most Economists Expect GDP Growth to Slow to Around 6.1% in the second half of the year.

Follow our live blog for more stock market updates