GDP growth expands to 6.3 per cent, boost to govt

Posted December 01, 2017

His comments come ahead of the second quarter GDP data that will be released by the Central Statistics Economy later this evening.

The GDP for the July-September quarter showed a growth rate of 6.3 per cent after the previous quarter recorded a three-year low of 5.7 per cent.

The senior Congress leader said, "We should wait for the growth rates over the next 3-4 quarters before we can reach a definite conclusion".

The Narendra Modi government on Thursday cited its policies for the acceleration of the country's gross domestic product (GDP) to 6.3 per cent during the second quarter (Q2) of 2017-18.

The GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period.

Echoing Prabhu's sentiment, Information Technology Minister Ravi Shankar Prasad said: "India's GDP growth rate shows upward trend in 2nd quarter of 2017-18 and registers a growth rate of 6.3 per cent". Chief Statistician TCA Anant hinted that the numbers could be revised upwards as businesses uncertain of the new GST regime may have accounted for lesser taxes.

"Government's reforms to push economic growth are working (and it) can be seen from that manufacturing has shown robust growth of 7 per cent in Q2 and services at 7.1 per cent", tweeted Finance and Corporate Affairs Minister Arun Jaitley.

It was 7.5 per cent in the corresponding period of a year ago. "In the coming quarters, the GST reforms in terms of rates and compliance should play a significant part in manufacturing sector growth".

China remained ahead of India for a third quarter in a row in July-September, posting 6.8 per cent growth. But we can not say now whether this will mark an upward trend in the growth rate.

The agriculture, forestry and fishing sector is estimated to have grown by 1.7 per cent.

The FM further said, "the rate of growth of gross fixed capital formation has also increased from 1.6 percent in the first quarter to 4.7 percent in the second quarter". Prominent Indian firms had their best profit growth in last six quarters in July-September, according to Thomson Reuters data.

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. The growth in public administration, defence and other services also stood at 6 per cent.