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GDP recovers, grows at 6.3% in July-September quarter

03 December 2017

This was a break with five quarters of declining trends in growth, but India remained behind China in economic expansion.

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. Manufacturing grew 7% while agriculture growth was 1.7%, down from 2.3% in the trailing quarter. Jaitley said the Goods and Services Tax (GST) started with different tax rates and they have rationalised rates on many items.

He said the government reforms to push economic growth are working can be seen from the robust growth of seven percent in manufacturing and 7.1 percent in services in the second quarter of this fiscal.

There are expectations of a rebound in economic activities after GDP growth of a mere 5.7 per cent in the first quarter of the fiscal.

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.

"But we can not say now whether this will mark an upward trend in the growth rate".

Political leaders condemn killing of Kashmiri army officer
The locals found the body lying in pool of blood at Wothmula Nad area of Keegam, after which they informed the police. In September, militants killed 31-year-old BSF trooper Ramzan Parray outside his home in Bandipora.

The gross fixed capital formation, a leading indicator for investment in the country, grew 4.7% in the September quarter up from just 1.6% in the previous one.

Moody's had upgraded India's sovereign credit rating for the first time in 14 years on account of progress in economic and institutional reforms boosting growth potential.

"Indias economic stress continues; GDP far below at 6.3 pc compared to 7.5 pc of Q2 of a year ago! - a close scrutiny reveals the real picture of the economic mess created by BJP Government", he said in a statement. "It's possible that anticipating the need for the festive season, most of the production went into the sale and inventory restocking may happen later...inventory accumulation effect may persist in the third quarter as well", he explained. The main NSE share index is up 27 percent in 2017.

But India will eventually have to fall back on domestic demand, he added.

After front-loading state spending in the fiscal year's first half, Finance Minister Arun Jaitley has limited room to spend amid slowing revenue growth.

He said deceleration trends in overall growth witnessed since Q1 of the last fiscal year had been reversed.

GDP recovers, grows at 6.3% in July-September quarter