NEW DELHI: The government on Thursday welcomed the upward push in gross home product (GDP) figures for the second one quarter and mentioned that the numbers will develop additional. TCA Anant, Chief Statistician of India, termed the latest GDP numbers as "very encouraging" and mentioned he expects it to turn additional recovery within the coming quarters. Finance Minister Arun Jaitley also echoed an identical views and credited the producing sector as primarily the driving factor for the growth. "The numbers indicated that the impact of demonetisaton and GST (Goods and Services Tax) are behind us," he added.
The GDP expansion had hit a three-year low within the first quarter of 2017-18. It was once 7.5 per cent within the September quarter of 2016-17.
Here are 5 takeaways from the GDP numbers:
1. The upward push in numbers most likely hints that there might be no trade within the coverage rates by means of Reserve Bank of India (RBI) in its upcoming monetary coverage meet on December 6. "The latest growth outturn is in line with RBI's recent rhetoric and thus shouldn't move the needle on interest rates. We expect RBI to remain on pause in December and February, given upside risks to inflation as well as the fiscal deficit, exacerbated by rising oil prices and a gradually tightening global rates environment," Sumedh Deorukhkar, senior economist, BBVA, Hong Kong.
2. The expansion charge was once extensively expected to bounce again as there were clear signs of the companies popping out of slowdown brought about by means of demonetisation and GST rollout. Analysts says that it is an indication that corporations are beginning to recuperate after being hit previous this 12 months by means of uncertainty tied to the rollout of the GST and ultimate 12 months's notes ban.
three. Chief Statistician Anant hinted that the numbers might be revised upwards as companies uncertain of the new GST regime could have accounted for lesser taxes. After the 5 quarters of expansion decline, "we see reversal of GDP in the second quarter".
four. Gross worth added (GVA), a key input of GDP that is tracked by means of the RBI, rose 6.1 per cent in July-September compared to 5.6 per cent within the June quarter this 12 months and six.8 per cent within the September quarter of the ultimate fiscal.
5. The statistics showed sturdy expansion in business, resorts, delivery and conversation. Agriculture, forestry and fishing were slightly flat.
(With inputs from agencies)
The GDP expansion had hit a three-year low within the first quarter of 2017-18. It was once 7.5 per cent within the September quarter of 2016-17.
Here are 5 takeaways from the GDP numbers:
1. The upward push in numbers most likely hints that there might be no trade within the coverage rates by means of Reserve Bank of India (RBI) in its upcoming monetary coverage meet on December 6. "The latest growth outturn is in line with RBI's recent rhetoric and thus shouldn't move the needle on interest rates. We expect RBI to remain on pause in December and February, given upside risks to inflation as well as the fiscal deficit, exacerbated by rising oil prices and a gradually tightening global rates environment," Sumedh Deorukhkar, senior economist, BBVA, Hong Kong.
2. The expansion charge was once extensively expected to bounce again as there were clear signs of the companies popping out of slowdown brought about by means of demonetisation and GST rollout. Analysts says that it is an indication that corporations are beginning to recuperate after being hit previous this 12 months by means of uncertainty tied to the rollout of the GST and ultimate 12 months's notes ban.
three. Chief Statistician Anant hinted that the numbers might be revised upwards as companies uncertain of the new GST regime could have accounted for lesser taxes. After the 5 quarters of expansion decline, "we see reversal of GDP in the second quarter".
four. Gross worth added (GVA), a key input of GDP that is tracked by means of the RBI, rose 6.1 per cent in July-September compared to 5.6 per cent within the June quarter this 12 months and six.8 per cent within the September quarter of the ultimate fiscal.
5. The statistics showed sturdy expansion in business, resorts, delivery and conversation. Agriculture, forestry and fishing were slightly flat.
(With inputs from agencies)
GDP numbers 'very encouraging': Key facts
![GDP numbers 'very encouraging': Key facts]()
Reviewed by Kailash
on
December 01, 2017
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