FY10 GDP growth seen at 7.2%, FY11 at 8.5%; IIP has slowed on MoM basis; GDP tgt higher than consensus, not looking to up further: HSBC Holdings
Robert Prior-Wandesforde, Senior Asian Economist at HSBC Holdings said that FY10 GDP growth is seen at 7.2%, and that of FY11 at 8.5%. IIP has slowed on MoM basis. He feels that front line IIP numbers were above consensus. He said that the trend in industrial production has slowed on seasonally adjusted basis. He targets GDP higher than consensus, and is not looking to up further.
Gaurav Kapur, Senior Economist at ABN AMRO Bank said that he had expected IIP below 10%, and feels that the actual numbers are surprising. He expect double digit growth in December. However, he expect growth to slow down after December. FY10 GDP growth is seen at 6.8-7%, he added.
November IIP stood at 11.7% Vs 2.5% (YoY), Vs 10.3% (MoM). CNBC-TV18 poll saw November IIP at 10.2%. October IIP remained unchanged at 10.3%.
November Manufacturing Sector growth stood at 12.7% Vs 2.7% (YoY). Basic Goods growth stood at 6% Vs 2.2% (YoY). Capital Goods growth stood at 12.2% Vs 0.5% (YoY). Mining Sector growth stood at 10% Vs 0.7% (YoY). Electricity Sector growth stood at 3.3% Vs 2.6% (YoY). Intermediate Goods growth stood at 19.4% Vs -3.9% (YoY). Consumer Goods growth stood at 11.1% vs 9.4% (YoY). Consumer Durable Goods growth stood at 37.3% Vs 0.3% (YoY).