India's July-September GDP Increases 6.3%

Tammy Harvey
December 1, 2017

The data also showed that the gross domestic product or GDP numbers expanded due to accelerated growth of manufacturing sector in the country.

Speaking at the HT Leadership Summit here, he said India has done well by growing at 7-8 per cent during the last three years. The country's fiscal deficit crossed 96 per cent of budget estimates at October-end, according to government data.

Finance Minister Arun Jaitley has said, the GDP rate at 6.3 percent marks the reversal of declining trend in the last five quarters.

Opposition Congress on Thursday observed that GDP growth was a "temporary pause" from the downward trend though an "encouraging sign". "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 after the Central Statistics Office released the GDP data.

Growth had slid to a three-year low of 5.7 percent for the three months to June on the spillover effects of the note ban and the GST implementation.


The fiscal second quarter (July-September), which coincided with the July 1 roll-out of GST, saw GDP growth accelerate to 6.3%, from 5.7% in the first quarter. "We should wait for the growth rates over the next 3-4 quarters before we can reach a definite conclusion", he said in a series of tweets.

A government press release said: "The economic activities which registered growth of over 6.0 percent in Q2 of 2017-18 over Q2 of 2016-17 are "manufacturing", "electricity, gas, water supply & other utility services and 'trade, hotels, transport & communication and services related to broadcasting".

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. "But we can not say now whether this will mark an upward trend in the growth rate", Chidambaram added. "In the previous quarter, businesses were delaying production amid preparations for the GST launch", he said, adding that the output in the September quarter is primarily for consumption and sales.

China remained ahead of India for a third quarter in a row in July-September, posting 6.8 per cent growth. "The latest growth outturn is in line with RBI's recent rhetoric and thus shouldn't move the needle on interest rates".

Mr Anant said, agriculture, forestry and fishing sectors are estimated to have grown by 1.7 per cent.

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