Business EconomyPosted at: Feb 21 2018 7:43PM

New Delhi, Feb 21 (UNI) The largest public sector bank State Bank of India (SBI) believes that Index of industrial production (IIP) Manufacturing may grow at close to 5 per cent in January 2018 and could even top 8 per cent in February 2018.
According to the Economic Research Department, the bank’s report authored by Dr Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI Yearly Composite Index for February 2018 is at 33-month high at 55.0 (Moderate Growth), compared to 52.1 (Moderate Growth) in January 2018. The M-o-M index also crossed the benchmark of 50 and is at 50.1 (Low Growth) in February 2018, compared to 49.5 (Low Decline) in January 2018.
With the robust growth in the SBI Composite Index, a synchronised global growth with an uptick in commodity cycle will also help sectors like metals, textiles and even sugar. For example, textiles traditionally an employment intensive sector, the credit growth in textiles has dipped into negative territory since the sector earned a bad name due to defaults.
However, going by Financial Year 2017, Initial Public Offer (IPO) mop up of more than Rs 800 crore, textile is likely to do well in the coming fiscal.
Additionally, results of 3415 listed entities shows an encouraging growth of 17.08 per cent in bottom line where as top line grew at 11.36 per cent in third quarter of Financial year 2017-18 (Q3FY18) as compared to third quarter of Financial Year 2016-17 (Q3FY17).
Sectors such as Petrochemicals, Paper, Automobiles, Chemicals etc have demonstrated excellent growth in Q3FY18.
Bank believes that manufacturing Gross Value Addition (GVA) would be in the range of 8-10 per cent for Q3FY18 if the current trend persists for remaining companies also.
With the leading indicators also showing positivity, we expect overall Gross Domestic Product (GDP) growth in Q3 of current fiscal could be in the higher end of 6.5 per cent-7 per cent bucket. Q4 FY18 GDP could even top 7 per cent.
UNI ADP SHK 1943

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