India posts 7.3% growth in second quarter

Driven largely by services and manufacturing sectors, India posted 7.3% economic growth in the second quarter (July-September) and remained the fastest growing among major economies.

The growth rate was higher than the first quarter (April-June). But compared on yearly basis it was much lower than the 7.6% achieved in the same period (July-September) last year.

Among the services, trade, hotel, transport and communication grew 7.1%, public administration and defence were up 12.5%. Agriculture, too, posted a good growth of 3.3% in the second quarter, higher than 1.8% in the first three months of the current fiscal.

Also, the manufacturing sector grew 7.1% in the quarter under review. Reacting to the economic data, industry chamber Assocham said downside risks to India’s economic growth still prevailed in the form of recently implemented demonetisation policy, risks from Brexit, transition of the Chinese economy and protectionist measures adopted by advanced economies.

Chief Statistician T C A Anant said the advance estimates for the GDP data for the current fiscal will be released on January 7, a month in advance.

“The numbers point to the continuing dependence on consumption and public spending to revive demand, while investments are showing a declining trend as compared to last year”, said the CII in a statement.

It said the demonetisation move will act as a temporary setback to growth in the coming quarters as well.