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Economic growth in October crossed the five-per cent level for the first time in a financial year, Zyfin Research said on Thursday, giving a sign of economic recovery in the second half of financial year 2014.
Gross domestic product (GDP) in October grew 5.2 per cent annually compared with 4.9 per cent in September this financial year. The last time economic growth had crossed the five-per cent level was in August 2012, when GDP had expanded 5.1 per cent.
According to Zyfin, this is the fifth straight month of acceleration in growth. “The above trends clearly suggest the commencement of economic recovery,” the firm said.
However, experts at Zyfin said this does not indicate a fuller economic bounce-back. “Sustained economic recovery will, however, be contingent on recovery of private consumption,” said Debopam Chaudhuri, vice-president of research at the firm.
Consumer sentiments as measured by ZyFin Consumer Outlook Index was at an all-time low in November, he said.
According to official estimates, the GDP grew 4.8% in the second quarter of this year compared to a four-year low of 4.4% in the first quarter of 2013-14.
