India’s economy grows 6.3% in Q2 this fiscal

The Dollar Business Bureau

India’s economy grew in line with the expectations in the second quarter of the current fiscal, supported by growth in manufacturing, electricity, gas, trade, transport & communication.

India’s gross domestic product rose 6.3% during the period July-September, according to the estimates released by Central Statistics Office (CSO) on Thursday.

The growth in the second quarter was predicted by the economists to be little better compared to 5.7% in the previous quarter, will factor in the disruptions caused by the rollout of GST from July 1.

“GDP at constant (2011-12) prices in Q2 of 2017-18 is estimated at Rs.31.66 lakh crore, as against Rs.29.79 lakh crore in Q2 of 2016-17, showing a growth rate of 6.3%,” said a statement issued by the Ministry of Statistics & Programme Implementation on Thursday.

During the quarter, the activities that recorded the maximum growth are manufacturing, electricity, gas, water supply & other utility services and trade, hotels, transport & communication and services related to broadcasting.

In terms of GVA, trade, hotel, transport, communication & services related to broadcasting witnessed the highest growth of 9.9% in the quarter over the same quarter last fiscal. It is followed by electricity, gas, water supply & other utility services with 7.6% and manufacturing with 7% growth.

In addition, public administration, defence and other services grew at a rate of 6% during the period, whereas financial, insurance, real estate &professional services recorded 5.7% growth.

During this period, the growth in mining & quarrying, construction and agriculture, forestry & fishing is estimated to be 5.5%, 2.6% and 1.7%, respectively.

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), the statement said.

With the introduction of GST and consequent changes in the tax structure, the total tax revenue used for GDP compilation include non-GST revenue and GST revenue based on GSTR filings as provided by Central Board of Excise and Customs (CBEC), it said.

Performance of key indicators of sectors such as transport including railways, road, air and water transport etc, communication, banking and insurance during the period July-September 2017 have been taken into account while compiling the estimates, it added.