Indian economy grows at 7.4% in July-Sept quarter

Finance Ministry expects India’s economy to grow at about 7.5% during the current financial year. The Dollar Business Bureau

The biggest surprise was recorded in the agriculture sector, which grew at 2.2% despite a 14% deficiency in monsoon this year.

India’s Gross Domestic Product (GDP) grew by 7.4% during the second quarter of 2015-16, said a data released by the Central Statistics Office (CSO). The biggest surprise was recorded in the agriculture sector, which grew at 2.2% despite a 14% deficiency in monsoon this year. “GDP at constant (2011-12) prices in July-September of 2015-16 is estimated at Rs. 27.57 lakh crore as against Rs.25.66 lakh crore in July-September of 2014-15, showing a growth rate of 7.4%,” said the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation. The GDP at current prices in July-September of 2015-16 is estimated to be Rs.32.66 lakh crore, compared to Rs.30.80 lakh crore during the same period last year, thereby registering a growth rate of 6.0%. According to the data, growth rate in trade, hotels and transport sectors shot up by 10.6%, financial services by 9.7%, manufacturing by 9.3% and electricity and gas by 6.75% during the period July-September 2015. India’s GDP growth has been oscillating between 7.0% and 7.5% since the start of this financial year. Several industry experts have termed this growth ‘satisfactory’ when compared to the economic growth of other emerging economies in the world. The world’s second largest and Asia’s largest economy China grew at 6.9% during the second quarter. Finance Ministry expects the country to grow at about 7.5% during the current financial year. “The fixed investment has grown by 6.8% in the second quarter of current financial year. The service sector growth is still robust at 8.8% in July-September of 2015-16, with the trade and transport services leading the way. Overall, the ministry is expecting the economy to grow in the vicinity of 7.5% in financial year 2015-16,” the Finance Ministry pointed out. The GDP growth rate during the second quarter of 2015-16 is greater than the growth in the first quarter. It grew by 7.0% in the first quarter of 2015-16. Commenting on the growth, FICCI Secretary General A Didar Singh said, “An uptick has been noted in GDP numbers and we are steadily moving on the recovery path which is an encouraging sign. Both industry and services sector continue to support growth and the performance of agriculture sector has also noted an improvement. We need to move on to a higher growth trajectory, which calls for continuous reforms.” Singh underlined the importance of continuous reforms in the government’s policy to keep the optimism intact in the domestic industry. He emphasised the need to encourage domestic private investors as they held the key to the country’s growth. “The global economy has been volatile and domestic demand is restrained. It is important to remain proactive on the reforms front and focus on implementation,” Singh said.

December 01, 2015 | 2:30pm IST

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The Dollar Business Bureau - Dec 01, 2015 09:02 IST

Indian economy grows at 7.4% in July-Sept quarter

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