India’s economy likely expanded almost 7% in the latest quarter as businesses became more accustomed to a new tax regime that earlier damped output.
Gross domestic product likely grew 6.9% in the October-December period, according to the median estimate in a poll of 12 economists by The Wall Street Journal. GDP data is scheduled to be released Wednesday.
If the reading matches the estimate, it would mark a second straight quarter of strengthening after growth slipped to a three-year low.
Growth in the South Asian economy accelerated to 6.3% in the preceding quarter after an expansion of 5.7% in the April-June period.
“The bottoming out has happened, but a sustained improvement is still some time away,” said Sujan Hajra, chief economist at Anand Rathi Securities.
A hurried implementation of the country’s new goods-and-services tax system, which has multiple rates and more-complex filing procedures, weighed down economic activity last year. The pain, however, is gradually easing as businesses get comfortable with the new rules.
“Economic growth is expected to revive further on the back of healthy consumption demand, government expenditure and global-recovery-led pickup in exports,” said Aditi Nayar, an economist at ICRA, a unit of Moody’s.
In January, the government issued an economic survey that forecast GDP growth would accelerate in the coming fiscal year, starting in April 2018, to between 7% and 7.5% from an expected 6.8% in the current year.
Source: Dow Jones