GDP rebounds to 6.3% in the second quarter

Marcus Newton
December 4, 2017

"However, after the final indirect tax collection data is released, it might lead to upward revision in the growth numbers". He has been grappling with slowing growth in the past five quarters, with the economy dragged down by subdued private investments, an unprecedented cash ban imposed previous year and the introduction of a country-wide consumption tax in July.

RBU may hold rates as economy rebounds to 6.3 per cent in september quarter. "The deceleration in overall growth witnessed since the first quarter of the last fiscal has been reversed", added the finance minister.

According to data from the Central Statistics Office (CSO), the GDP for Q2 stood at Rs 31.66 lakh crore, or a growth of 6.3 per cent. Agriculture Sector Growth is Abysmal & Core Sector Growth is Stagnant & Manufacturing Down - What is the Modi Government celebrating.

The second quarter of every financial year has consistently been high.

Still, the Indian economy is far from a complete recovery.

-Public administration, defence: 6.1 %.

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The economic growth rate had slipped to three-year low of 5.7 per cent in the first quarter of 2017-18 financial year.

"The GST impact was only for one quarter mainly because of destocking". Agriculture, forestry and fishing were relatively flat. "This also indicates that perhaps the impact of two very significant structural reforms - demonetisation and GST - is behind us and hopefully in coming quarters we can look for an upwards trajectory", he said. Recently, the US-based Moody's upgraded India's sovereign rating after a gap of 13 years to "Baa2", with "stable" outlook, from "Baa3" earlier, citing improved growth prospects driven by economic and institutional reforms. It seems the construction sector suffers from a deeper malaise that needs to be identified and addressed.The heavy lifting, therefore, has to be done by the services sector that has a combined weight of over 46 per cent.

Trade, hotels, transport & communication and services related to broadcasting sector grew by 9.9 percent as compared to growth of 7.7 percent in Q2 of 2016-17. This marks the reversal of this trend.

Chennai: India's economic growth pace picked up to 6.3 per cent in the three months ending in September, halting a five-quarter slide as businesses started to overcome teething troubles after the bumpy launch of a Goods and Services Tax (GST).

Ahead of Gujarat elections, India's GDP (Gross Domestic Product) growth rate for the second quarter of the current fiscal has brought forth reasons for cheer for the Modi Government, was being criticised by opposition as the country's GDP had been sliding for the last five quarters after demonetisation. Gross fixed capital formation has risen by a little over four per cent in the second quarter this year, but as a share of GDP it continues to decline - a trend that has remained unchanged since the July-September 2016 quarter. "However, the deflator for this segment is declining in the past three quarters (from 5.0% to 2.1%) which is contributing to higher real growth", SBI said.

Other reports by MaliBehiribAe

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