The Finance Minister further said, "The deceleration in overall growth witnessed since the first quarter of the last fiscal has been reversed and the economy now seems to have weathered the transitional challenges experienced earlier in the year and appears poised for a durable recovery going forward". "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).
The GDP growth had hit a three-year low in the first quarter of 2017-18.
The GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period.
The fiscal second quarter (July-September), which coincided with the July 1 roll-out of GST, saw GDP growth accelerate to 6.3%, from 5.7% in the first quarter.
"In a normal year, businesses are conversant with the tax processes, and so know their tax liability, so the collections are usually in line with what is anticipated", TCA Anant, Chief Statistician of India and Secretary to the Ministry of Statistics and Programme Implementation, said on Thursday.
Chidambaram also said that "6.3 per cent is far below the promise of the Modi government and far below the potential of a well-managed Indian economy". Analysts on the contrary say that rising global oil prices could pinch consumers through higher inflation and may instead force the RBI to hike the rates in the second half of 2018, denting the growth momentum, according to media reports. Mr Anant said, the manufacturing sector in the second quarter of 2017-18 grew by 7 per cent. The growth in agriculture, forestry and fishing was 1.7 per cent, mining and quarrying 5.5 per cent, construction 2.6 per cent, and financial, insurance, real estate and professional services 5.7 per cent. But we can not say now whether this will mark an upward trend in the growth rate. "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. If it slows down, it is more towards 7 and if it paces up it is more towards 8 per cent growth. Great news that quarterly GDP growth accelerates to 6.3 per cent against 5.7 per cent from the previous quarter.
- 5 militants killed, army para commando injured in two Kashmir gunfights
- Cyber Monday Becomes 'Mobile Monday' With $6.5 Billion Revenue Haul
- Conor McGregor's Dad Responds to Rumors UFC Champ's in Danger
- USA plane INTERCEPTED by fighter jet close to Russian border
- Waze Adds Voice Commands, Motorcycle Mode, Carpool Lanes
- Justin Thomas has a warning for Tiger Woods ahead of his comeback
- Harry and Meghan's Wedding Will Be Very Different From William and Kate's
- War criminal dies after drinking poison in United Nations court
- Google Datally Android app gives fine-grained mobile data control
- Explore Kobolds & Catacombs on December 7!