Rise in Q2 GDP signals economic recovery: India Inc

GDP numbers 'very encouraging': Key facts

The new numbers indicate that the economy is recovering after it hit a temporary slump following last year's note ban and the rollout of GST.

However, it can not be said now whether this will mark an upward trend in the growth rate.

The country witnessed the GDP growth of 5.7 per cent in April-June quarter, the lowest growth rate since Modi took over as PM, while it was 7.5 per cent in the September quarter of the previous fiscal. "Also, the government should look at further consolidating its reform agenda in the Union Budget to be announced two months from now to give further boost to investment".

In July-September, auto sales, manufacturing, electricity generation grew more quickly than in the previous quarter.

His comments come ahead of the second quarter GDP data that will be released by the Central Statistics Economy later this evening. TCA Anant, Chief Statistician of India, termed the latest GDP numbers as "very encouraging" and said he expects it to show further recovery in the coming quarters.




A day after Finance Minister Arun Jaitley claimed the "days of GST and demonetisation are behind us", he said on Friday that the Goods and Services Tax (GST) had made it easy for traders to spread business activities in any part of the country.

While manufacturing grew rapidly at 7% in the September quarter from merely 1.7% in the first quarter (April-June), the growth in electricity and other utilities was recorded at 7.6% and it was nearly 10% in trade, hotel, transportation and communication. "Gross fixed capital formation has also picked up from last year's lacklustre pace".

Official data on Thursday showed that a rise in the manufacturing sector's output pushed India's growth rate higher to 6.3 per cent during the second quarter of 2017-18.

Modi government hopes the ratings upgrade can attract more foreign investors, who pumped United States dollars 15 billion into Indian equities in July-September, up 44 percent from the previous quarter.

Reversing a five-quarter slide in Gross Domestic Product (GDP) growth, the economy bounced back from a three-year low to expand by 6.3% in July-September as manufacturing revved up and businesses adjusted to the new GST tax regime. The growth in agriculture, forestry and fishing was 1.7 per cent, mining and quarrying 5.5 per cent, construction 2.6 per cent, and financial, insurance, real estate and professional services 5.7 per cent.

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