Q2 economic growth may have surpassed RBI’s 7% projection: Economists

More encouraging, she said, was the sustained decline for demand for jobs under the MGNREGA over July to October as it indicates job creation in rural areas.

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“Real rural wage growth has also picked up which has supported consumption growth. Improvement was also seen in industrial activity indicators with a pickup in industrial output [measured by the Index of Industrial Production or IIP] growth, and freight transportation services,” she projected

The downturn in GDP deflator growth which led to the upsurge in growth in Q1 remains low in Q2 as well and is now tracking at 0.6 per cent, with the continued cooling of inflation measured by the Consumer Price Index (CPI) and Wholesale Price Index (WPI).

Penning in Q2 GDP growth at 7.2 per cent, Rajani Sinha, chief economist, CareEdge Ratings said that despite high tariffs, Indian exports to the US in the non-petroleum and non-agriculture sectors maintained their momentum. The construction sector is expected to remain robust due to strong capital expenditure allocations, Sinha argued.