Published: Sun, December 03, 2017
Economy | By Melissa Porter

GST made doing business easier, increased market size for traders: Jaitley

GST made doing business easier, increased market size for traders: Jaitley

Agricultural growth fell to 1.7 per cent in Q2 from 2.3 per cent in the previous quarter because of a sharp decline in the production of foodgrains during the kharif season. The country's fiscal deficit crossed 96 per cent of budget estimates at October-end, according to government data.

"Growth numbers are in sync with the expectations and re-affirm that signs of recovery are in sight", said Pankaj Patel, President of Ficci.

Opposition Congress on Thursday observed that GDP growth was a "temporary pause" from the downward trend though an "encouraging sign". This marks the reversal of this trend. "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).

Syncing with recent Moody's upgrade of India's sovereign credit for the first time in almost 14 years, the growth buoyancy comes at a time when the Modi Government has been facing Opposition charges of wrong implementation of demonetisation and GST that disrupted the $2.4-trillion economy.

In July-September, auto sales, manufacturing, electricity generation grew more quickly than in the previous quarter. "Gross fixed capital formation has also picked up from last year's lacklustre pace", he said.

"The September quarter GDP growth, he added, is quite a significant trend reversal and has been driven by pick-up in manufacturing". "It's possible that anticipating the need for the festive season, most of the production went into the sale and inventory restocking may happen later...inventory accumulation effect may persist in the third quarter as well", he explained.

"Indias rise in the World Banks ease of doing business rankings, upgrade by Moodys, praise by Standard & Poors and the strong growth in Q2 show that Indias rise is inevitable".

Reversing a five-quarter slide in Gross Domestic Product (GDP) growth, the economy bounced back from a three-year low to expand by 6.3% in July-September as manufacturing revved up and businesses adjusted to the new GST tax regime.

GDP growth in the first half of the fiscal stood at 6 per cent versus 7.7 per cent in H1 a year ago.

The agriculture, forestry and fishing sector is estimated to have grown by 1.7 percent.

TMC chief and West Bengal Chief Minister Mamata Banerjee was, however, more vocal in her criticism and claimed that a growth of 6.3 per cent was "no growth".

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