Expect GVA at 6.7%; GST nos don’t suggest trend improvement: Kotak Mah Bank


India’s third quarter gross domestic product (GDP) data will be reported today and according to CNBC-TV18 poll the number could come in at 6.82%.

Revenue collection from Goods and Services Tax (GST) touched Rs 86,318 crore in January, falling marginally from previous month’s mop-up, data released by Finance Ministry on Tuesday showed.

The GST numbers are just about okay, does not suggest an improvement in the trend, said Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank.

With regards to GDP, she said the house has a GVA number at 6.7 percent. “Recovery is likely to be broad-based especially within the industrial sector,” she said.

The available high frequency data points a significant recovery. The credit offtake to have been robust in the last full quarter, said Bhardwaj, adding that export numbers have been stable.

Moreover, corporate earnings too have surprised on the positive side. All these suggest a significant recovery in second half of the year.moneycontrol