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[email protected]: ‘GDP growth likely to get back to 7.5% ballpark in Q2’

September 20, 2018

With India’s economy expanding to an over two-year high, clocking 8.2 percent in the April-June quarter, Udayan Mukherjee, Consulting Editor, CNBC-TV18, said that GDP numbers would probably get back to the 7.5 percent going forward. In an interview with Moneycontrol’s Santosh Nair, Mukherjee noted that the fiscal deficit was a problem not only because of crude oil prices, but due to GST collection being continuously under shooting expectations.Following is the edited transcript of the discussion:Q: What do you make of the macro picture? On Friday you had strong set of gross domestic product (GDP) numbers, 8 percent plus. But at the same time you also have concerns about the fiscal deficit overshooting targets and also lower than expected Goods and Services Tax (GST) collections and weak set of core sector data for the month of July?Close A: The GDP numbers are encouraging and they certainly surprised a bit on the way up. But as we roll into Q2 and Q3, the numbers without the base effect will probably get back to the 7.5 percent kind of a ballpark. It could be 7.6 or 7.4, but broadly we will come back to the 7.5 percent handle, which is in line with market expectations. It is…

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