High oil prices, higher base led to lower growth rate

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The government on Friday credited the stoppage in India’s GDP development rate amid the second quarter of 2018-19 to a higher base impact, higher import bill because of oil costs and debilitating of the rupee.

It said that the economy is on track to keep up a high development rate in the current worldwide condition.

The comments came after the official information discharged on Friday demonstrated that the pace of India’s Gross Domestic Product (GDP) development impeded amid the second quarter of 2018-19 to 7.1 percent from 8.2 percent in the principal quarter.

The Finance Ministry said in an announcement the second quarter saw a sensible generally speaking GDP development of 7.1 percent with first-50% of the financial seeing a development rate of 7.6 percent.

“The development in the second quarter is on higher base contrasted with the development of the principal quarter,” the announcement said. India’s GDP development rate was 6.3 percent in second quarter of the past monetary while it was 5.6 percent in the main quarter.

“This quarter likewise confronted the test of higher oil costs bringing about a lot higher import bill and the debilitating of rupee. The Indian economy is on track to keep up a high development rate in the current worldwide condition,” the Ministry said.

Prior, Economic Affairs Secretary Subhash Chandra Garg said the GDP development at 7.1 percent “appears to be disillusioning”. He said while assembling and agribusiness development was consistent, development and mining reflected deceleration because of the storm. Notwithstanding, he said the half-year development at 7.4 percent was “very vigorous and solid”.

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