Published: Fri, December 01, 2017
Markets | By Rosalie Gross

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

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

In a series of tweets, he said: "This is a pause in the declining trend of the last five quarters".

The government will focus on infrastructure and rural India in the build-up to next year's budget, finance minister Arun Jaitley said on Thursday, saying the two areas can expect more spending. "We should wait for the growth rates over the next 3-4 quarters before we can reach a definite conclusion", Chidambaram said in his reaction to the latest GDP figures released by the Central Statistics Organisation (CSO).

Replying to a question on how the implementation of GST has impacted the GDP, Anant said "it introduced a measure of statistical challenge for us" while calculating the growth rate.

Gross domestic product grew 6.3 percent in July-September, its fastest pace in three quarters, the data showed.

The second quarter estimates are based on agricultural production during Kharif season of 2017-18 obtained from the Ministry of Agriculture, Department of Agriculture & Cooperation (DAC), abridged financial results of listed companies from BSE/NSE, Index of Industrial Production (IIP), monthly accounts of Union Government Expenditure maintained by Controller General of Accounts (CGA) and of State Government expenditure maintained by Comptroller and Auditor General of India (CAG).

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Reacting to the GDP growth, Chief Statistician TCA Anant hinted that the numbers could be revised upwards as businesses uncertain of the new GST regime may have accounted for lesser taxes.

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 Q2 growth pick up is nearly entirely due to the growth pick up in manufacturing, which came to a standstill prior to GST due to destocking", D.K. Srivastava, Chief Policy Advisor at EY India, said.

"The September quarter GDP growth, he added, is quite a significant trend reversal and has been driven by pick-up in manufacturing". "The deceleration in overall growth witnessed since the first quarter of the last fiscal has been reversed", he said. Prominent Indian firms had their best profit growth in last six quarters in July-September, according to Thomson Reuters data.

He said, this growth happened on the back of good growth in manufacturing sector, electricity, gas, water supply and other utilities. The growth in public administration, defence and other services also stood at 6 per cent.

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