GDP numbers disappoint; 7.5% full-yr target possible if govt tempo keeps up

The farm sector may hold the clue for the delta in GDP growth, both in terms of providing output as well as consumption expenditure

The Q2 gross domestic product (GDP) growth number is definitely lower than was expected at 7.1 per cent for two reasons. A higher growth looked logical, given that there was a favourable post-goods and services tax (GST) base effect in Q2FY18, when growth slowed to 6.3 per cent. Second, corporate results looked good for the manufacturing sector and would have indicated a more buoyant growth rate, which was not to be. Therefore, in a sense, the number is a bit of a disappointment. More so because to reach towards 7.4-7.5 per cent for the full year would require sustained growth