India's September quarter GDP growth at 6.3 per cent -breaks Five Qtrs Slump.

ET Online|

Updated: Nov 30, 2017, 05.41 PM IST

India may have moved past the note ban and GST shocks, clocking 6.3% growth in Q2 and a GVA of 6.1%. The improvement from a 3-year-low of 5.7% in the June quarter, is a breather for Prime Minister Narendra Modi who has been grappling with slowing growth, stagnant private investments, and shrinking exports. 

Quarterly GVA at basic prices for Q2 of 2017-18 from ‘manufacturing’ sector grew by 7.0 percent as compared to growth of 7.7 percent in Q2 of 2016-17. Quarterly GVA at basic prices for Q2 of 2017-18 from ‘mining and quarrying’ sector grew by 5.5 percent as compared to decline of 1.3 percent in Q2 of 2016-17. 

Big companies have largely adjusted to the changes while benefiting from reduced logistics costs. Prominent Indian firms had their best profit growth in last six quarters in July-September, according to Thomson Reuters data. 

The results are an indication that firms are starting to recover after being hit earlier this year by uncertainty tied to the rollout of GST and demonetisation. 

In July-September, auto sales, manufacturing, electricity generation grew more quickly than in the previous quarter. 

Consumption demand in urban and rural areas have improved along with an increase in the indicators of private investment demand, Japanese brokerage and investment firm Nomura had said in a research note. 

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