India’s economy grew at a 6.3 percent in the second quarter of the financial year, according to a report released on Thursday, inverting five quarters of slowing growth.
The growth has dropped from 9.1 percent in the first quarter of 2016 to 5.7 percent in the second quarter of 2017 so the Prime minister of India, Narendra Modi has come under the pressure.
The economic activities such as manufacturing, water supply & other utility services and trade, electricity, hotels, gas, transport & communication and services related to broadcasting have registered growth of over 6.0 percent in Q2 of 2017-18 over Q2 of 2016-17.
Gross Domestic product’s key input tracked by the central bank jump to 6.1 percent while the estimated number was 6.2 percent.
When the GDP data was released, Finance Minister Arun Jaitley said in a statement that the governments improve to translate economic growth into powerful growth in manufacturing and service sector.
Finance Minister Arun Jaitey also said that the last year’s base effects led to poor agriculture growth. Now, the GDP boost could force country set back on a growth track and would create jobs in the country.
The chief economist at India Ratings & Research Devendra Pant said, “Although we believe there is some effect of the low base of last year’s second quarter, the growth trend in core GVA that’s excluding state and farms’ spending is very encouraging. There seems to be some restocking after GST and manufacturing are doing relatively well.”
India was the world’s fastest-growing economy but after January-March 2016 quarter country’s economy’s slowdown began. And after the announcement of demonetization, this economic recovery is not yet complete.