Dip in oil prices, stable rupee indicate signs of growth: Finance Secretary

NEW DELHI: Declining global oil prices, stable rupee and falling interest rate are sure signs of high growth in coming months, said Finance Secretary Subhash Chandra Garg.

India’s growth rate has declined to 5-year low of 5.8% in the fourth quarter of the previous fiscal and 6.8% for the full financial year 2018-19.

“Turn around in demand and financing conditions beginning well. PMI manufacturing is at 52.7. Crude is moving towards 60 dollars. Govt bond yield has gone below 7%. Spread for NBFCs/HFCs over Govt bond is narrowing. Rupee is firmly below 70. Sure signs of coming high growth,” he said in a tweet.

The country’s manufacturing sector performance gained momentum in May as companies lifted output amid strengthening demand conditions, leading to further job creation in the sector, according to the latest PMI data.

The Nikkei India Manufacturing Purchasing Managers’ Index improved to 52.7 in May from 51.8 in April, pointing to the strongest improvement in the health of the sector in three months.

This is the 22nd consecutive month that the manufacturing PMI has remained above the 50-point mark. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

Last week, Garg had said slowdown would continue in the first quarter of this fiscal. He, however, expressed hope that growth will pick up from the second quarter of the current financial year.

Source: Press Trust of India

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