New Delhi:
India’s GDP growth will improve in the third quarter of the current financial year i.e. October to December and inflation will come down. This information was given in the HSBC Research report on Tuesday. The report said that the growth rate had fallen to 5.4 percent in the second quarter of the current financial year, but our analysis of 100 Activities Indicator shows that the growth rate has improved in the third quarter. It has happened.

According to the report, 65 percent of the indicators are growing at a positive pace in the December quarter, whereas in the previous quarter it was 55 percent. Improvements have been most clearly seen in agriculture, exports and construction. There has also been some improvement in urban consumption.

However, utility and private investment indicators still remain sluggish. The situation is still not as good as in the June quarter, when about 75 percent of the indicators were moving positively.

The report said that the situation is currently between the high level of June and the low level of September. GVA growth rate remains around 6.5 percent. The report further said that food inflation has started to decline and due to this the overall inflation rate is expected to go below 5 percent.

The retail inflation rate in October stood at 6.2 percent. It was also at a high level in November. The prices of food items started declining in December and a further decline is being seen in January.

“Prices of vegetables (onions, tomatoes and carrots) have declined in December, as have prices of some pulses. Based on this, we estimate inflation to be 5.5 per cent in November,” the report said. It may decline to 5.3 percent in December and slightly less than 5 percent in January.”