Economy rebounds: GDP growth rate rises to 6.3% in September quarter

Posted December 01, 2017

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".

It was 7.5 per cent in the corresponding period of past year. But we can not say now whether this will mark an upward trend in the growth rate.

Addressing a press conference in New Delhi, Chief Statistician of India, Dr TCA Anant, said the recovery of GDP growth to 6.3% in Q2 from a 3-year low of 5.7% in Q1, after nearly 5 quarters of decline, "marks a reversal which is very encouraging".

According to the finance minister, India managed 7% to 8% growth at a time the world was moving slowly.

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In a relief for the Narendra Modi government, India's GDP growth finally picked up in the second quarter (July to September) of 2017-18, expanding by 6.3 per cent mainly due to good performance by the manufacturing sector.

Chief Statistician T C A Anant said it was indicative of growth returning to normal levels.

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.

Earlier this month, rating agency Moody's - which upgraded India's credit rating to Baa2 from Baa3 and changed its India outlook to positive from neutral - said it expected the economy to grow at 6.7 per cent this fiscal and rise to 7.5 per cent in 2018-19.

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"It is well accepted that investment in infrastructure is essential to growth, it increases the productivity of existing resources and crowds in private investment, which in turn creates more jobs and leads to economic well-being", he said.

Reversing the five quarters of slowing GDP growth, Indian economy expanded by 6.3 per cent in July-September on the back of a pick-up in manufacturing.

Chouhan's statement comes hours after the Ministry of Statistics and Programme Implementation (MOSPI) said India's GDP growth has recovered to 6.3 percent in the second quarter from a three-year low of 5.7 percent in first quarter. 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.

"Robust growth of 7.6 percent in electricity and other utilities, and 9.9 percent in trade, transportation and communications also powered this acceleration", the FM said, adding "Overall, the services sector recorded a growth of 7.1 percent in the second quarter". The growth in public administration, defence and other services also stood at 6 per cent.

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