Why in news
GDP growth was expected to have slowed to a four-quarter low of 6.7% between January and March, which would, however, still add up to an average 7.8% pace of growth for 2023-24, ratings firm ICRA projected.
The National Statistical Office (NSO), which will present national income estimates for 2023-24 on May 31, had earlier projected a 7.6% GDP growth for the year gone by, factoring in a 5.9% uptick in the final quarter, compared with the 8.4% growth estimated for the third quarter.
Reasons
According to ICRA, slowdown in industry and services and contraction in agriculture likely retarded fourth-quarter momentum
Agricultural GVA (Gross Value Added) is expected to have contracted for the second straight quarter, shrinking 0.5%, after a 0.8% drop in Q3, amid weak trends in the rabi output for crops other than wheat and concerns related to yields, ICRA said.
Lower volume growth, coupled with diminishing gains from commodity prices dampening the profitability of some industrial sectors, were responsible for slower Q4 GVA growth.
ICRA
ICRA Limited (ICRA) is an Indian independent and professional investment information and credit rating agency.
The company was established in 1991, and was originally named Investment Information and Credit Rating Agency of India Limited (IICRA India)
ICRA's credit ratings are symbolic representations of its current opinion on the relative credit risks associated with the rated debt obligations/issues.
These ratings are assigned on an Indian (that is, national or local) credit rating scale for Indian Rupee denominated debt obligations.
ICRA ratings may be understood as relative rankings of credit risk within India.
ICRA ratings are not designed to enable any rating comparison among instruments across countries; rather, these address the relative credit risks within India.
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