India’s Q2 GDP rises to 7.3%
India’s GDP grew at 7.3% per cent in the September quarter of current fiscal, up from 7.1% in the previous three months, mainly on improved performance of manufacturing, services and trade sectors, data released on Wednesday revealed.
According to analysts, the implementation of the Seventh Pay Commission ushered in the dividends in the second quarter. It boosted domestic demand and improved the GDP for this quarter.
The Gross Domestic Product (GDP) or national income was 7.6% in the second quarter of the last fiscal. According to the data released by the Central Statistics Office (CSO), the Gross Value Added (GVA), which is estimated at the basic price, showed a growth of 7.1% in the second quarter of 2016-17, compared to 7.3% in the year ago period.
The sectors which registered growth of over 7% in July-September quarter are ‘public administration, defence and other services’, ‘financial, insurance, real estate and professional services’, ‘manufacturing’ and ‘trade, hotels and transport and communication and services related to broadcasting’, the data said.
The data for the September quarter, however, does not reflect the impact of demonetisation. Experts warned that the surprise move may affect the GDP and this will show coming quarters. According to them, the step to denotify Rs 500 and Rs 1,000 notes will slow down growth and thus the overall GDP for the financial year 2016-2017 will also come down.