Economy

Indian GDP Recovers to 6.3% in Q2 2017; Fading GST and Demonetization Impact

Indian GDP Recovers to 6.3% in Q2 2017; Fading GST and Demonetization Impact

Indian GDP growth rate has risen from last quarter’s 5.7% to 6.3% for the July-Sept quarter 2017. After Moody’s, Standard and Poor’s, the rise in GDP validates the growth in Indian Economy.

India to Soon Have $5 Trillion Economy: Suresh Prabhu

Commerce Minister Suresh Prabhu acknowledged the rise in GDP figures and said that India is set to become the third largest economy after USA and China. He also said that India will soon be a $5 trillion economy and is on the right track. He also stated that $1 trillion will come from manufacturing sector and they are also pushing for the growth of MSMEs.

Apart from GDP growth, manufacturing sector has witnessed a huge growth in Q2 from 1.2% n Q1 to 7% in Q2. Construction sector also witnesses a growth from 1.6% in Q1 to 5.8% in Q2. The informal sector has suffered with demonetization and GST rollout. The agriculture sector also saw a fall due to bad crop output from 2.3% in Q1 to 1.7% in Q2.

A Big Relief for Modi Government amid Gujarat Polls

The rise in GDP growth rate will definitely impact the Gujarat elections as PM Modi will leave no stone unturned to utilize this opportunity. Modi, who was mocked by the opposition when the fall in GDP figure in last quarter showed up will utilize this chance in the last few days of elections. Notably the opposition mocked the PM calling Vikas (Development) as mad.

Opposition that called “Vikas Pagal Hogaya Hai”, Development has gone mad will now be on the back foot with these latest growth figures. It seems that hangover of demonetization and the GST rollout has dried up giving a fresh and satisfactory figure to the government.

First by the World Bank and then by Moody’s and Standard and Poor and now the GDP figures, all these have will work in favor of the government in retaining the popular image of development. The election results will validate the trust of people in the government giving them an easy walkover in 2019.

 

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