New Delhi: India’s GDP growth rate is improving rapidly, which can benefit the Narendra Modi government in the Gujarat Legislative Assembly elections. The growth rate of GDP in the second quarter of the fiscal year 2017-18 has improved to 6.3 percent, which was at the lower level of three years in the first quarter. Increasing economic activity in the wake of the festive season and increased production to create inventory after the introduction of GST since July 1 has helped in accelerating the economy.
According to the data released by the Central Statistics Office, India’s GDP growth increased to 6.3 percent in the second quarter of the current fiscal, from 5.7 percent in the April-June quarter and 6.1 percent in the January-March quarter. However, the pace of growth in July-September is lower than 7.3 percent of the same quarter last year.
Despite the opposite of expectations, the second quarter GDP growth rate is behind China. India still remains the world’s second fastest growing major economy after China. In the last quarter of the last financial year, India had lost the first place in the list of the fastest growing major economies, when the GDP growth slipped to 6.1 percent.
GDP growth will also rise in the coming quarter: Arun Jaitley
Finance Minister Arun Jaitley said that in the last 5 quarters, there was a decline in GDP but now it is increasing. The government imposed a ban on bondage and GST to strengthen the economy. Due to the ban on bonding and GST, the economy will gradually accelerate. He expressed hope that the next two quarters of the current financial year will also increase. The Finance Minister said that from the initial analysis, it has been learned that this growth has increased due to the growth in manufacturing. Investment is gradually increasing.