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

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

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

"We estimate India's full year GDP growth to pick up from 6.7 percent in FY18 to 7.3 percent and 7.5 percent in FY19 and FY20, respectively".

"It's quite a significant trend reversal", he told reporters Thursday.

"India's rise in World Bank's Ease of Doing Business rankings, upgrade by Moody's, praise by Standard & Poor's and the strong growth in Q2 show that India's rise is inevitable", he said, adding that Modi government's efforts are ensuring better prospects for every Indian. Chandrajit Banerjee, director general, CII, said, "The rebound in GDP growth to 6.3%, after the uninspiring performance of the previous quarter is noteworthy and a great confidence booster".

The Gross Value Added (GVA) which is the total value of goods and services produced in the country after deducting the input cost accelerated 6.1% in the September quarter from 5.6% in the last quarter.

The GST was introduced on July 1 across the country. "But it will remain in Q3 as firms increase production in anticipation of more sales during the festive season", chief statistician T C A Anant told journalists.

However he acknowledged that growth clocked 7.5 percent in the same quarter past year.

Agricultural growth fell to 1.7 per cent in Q2 from 2.3 per cent in the previous quarter because of a sharp decline in the production of foodgrains during the kharif season.

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.

Ranen Banerjee, partner (public finance and economics), PwC India, said in a statement, "the GDP numbers for Q2 are not surprising and it is on expected lines given the re-stocking in manufacturing that has taken place in this quarter post the GST roll out".

SBI ResearchSBI Research data showed 6 per cent growth in the second quarter.

"The improvement in the GVA growth of manufacturing and mining was the key factor underpinning recovery in Q2 FY18".

NITI Aayog Vice-Chairman Rajiv KumarAccording to NITI Aayog vice-chairman Rajiv Kumar, Indian economy during July-September period is likely to grow at 6.2 to 6.3 per cent. This could be attributed to frontloading of expenditure by the government due to the early passage of Finance Bill in the current fiscal year.

But the upturn will come as a relief for Prime Minister Narendra Modi, who has been dogged by criticism over two major reforms that stalled India's much-needed economic expansion.

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