A sharp upward revision in the economic growth estimates for this fiscal has created doubts among economists and institutions, with German global banking and financial services major, Deutsche Bank on Wednesday saying it was difficult to make sense of the current GDP data, with ground reality pointing otherwise.
“We find it difficult to make sense of the current GDP data, with ground reality and high frequency indicators such as IP, PMI, CMIE capex, business and employment surveys indicating a much weaker cycle,” a Deutsche Bank report said.
India continues to report over 7 per cent GDP growth, but its momentum has weakened and the country's growth is well “below trend”, says the report.
According to the government, India’s economy is expected to growth at a five-year high of 7.6 per cent in the current financial year ending March 31. The data released also said that manufacturing is expected to growth 9.5 per cent.
The bank said that India’s growth was well below trend and that the investment recovery remained anaemic. It said support to growth was mainly coming from private consumption.
The government data however, showed that public investment and manufacturing led the growth.
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