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Nov 30, 2017 07:23 PM IST | Source: Moneycontrol.com

Uptick in manufacturing, investment boosted Q2 GDP numbers: Arun Jaitley

The Indian economy grew 6.3 percent in July-September, recovering from a three-year low growth slump of 5.7 percent in April-June.

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The Gross Domestic Product (GDP) growth recovery to 6.3 percent in the July-September period means India can now look at an upward trend in the coming quarters after five straight quarters of slower growth, Finance Minister Arun Jaitley said on Thursday.

“This (growth) indicates that the significant impact of two structural reforms — GST and demonetisation — is now behind us and hopefully, in coming quarters, we can expect upward trajectory,” Jaitley said after the Central Statistics Office (CSO) released GDP estimates on Thursday evening.

The Indian economy grew 6.3 percent in July-September, recovering from a three-year low growth slump of 5.7 percent in April-June, as companies scaled up production and restocked supplies after the goods and services tax (GST) kicked in from July 1.

GDP growth in Q2 was boosted by growth in manufacturing and the fixed capital formation at 4.7 percent indicates improvement in investment, said Jaitley.

Data released on Thursday by the Central Statistics Office (CSO) showed that the GST-induced supply shock may have eased considerably, helping a rebound in the broader economy.

Finance Secretary Hasmukh Adhia expects GDP numbers to go up after final revision.

On the rising prices of perishables, Chief Economic Advisor Arvind Subramanian said that the government will take action to keep prices in check. In recent times, while the prices of non-perishable goods like oilseeds and pulses have reduced, prices of perishable goods have risen.

Subramanian also doesn’t expect oil prices to stay above USD 60 per barrel in coming days.
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