Besides the criticism of oppositions and GDP of India increased by 0.6% recently. It indicates that the tuff economic decisions taken by the government have shown their result.
The rebound in GDP growth rate in September, from a three-year low of 5.7% in the June quarter, indicates that the Indian economy has shaken off the lingering effects of demonetisation and GST rollout’.
India’s economic growth in the second quarter (July-September) of current fiscal rose to 6.3 percent compared to 5.7 percent in the first quarter (April-June). The report showed that 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.
The GDP growth is in line with Forecasts made by SBI Research, Ficci, Reuters poll and Bloomberg. Manufacturing activity accelerated due to restocking of warehouses by companies after the temporary disruption caused by uncertainties surrounding the implementation of goods and services tax (GST).
Government’s reforms to push economic growth are working can be seen from that manufacturing has shown robust growth of 7% in Q2 and services at 7.1%. Gross fixed capital formation has increased from 1.6% in Q1 to 4.7% in Q2.
— Arun Jaitley (@arunjaitley) November 30, 2017
Growth in private consumption dipped to 6.5% in September quarter, investment demand growth picked up to 4.6% during the same quarter.
Public expenditure which used to be the driver of economic growth in the previous quarters slowed down to 6% in September quarter. Data separately released by the Controller General of Accounts showed government exhausting 96% of its annual fiscal deficit target in first seven months of the fiscal year till October against 73% exhausted during the same period a year ago.