Led by strong industrial activity and a better-than-expected agricultural performance, the economy grew at a rate of 5.7 per cent in the quarter ended June, its fastest pace in two-and-a-half years, according to government data released on Friday.
GDP growth was 4.7 per cent in the corresponding quarter a year ago. Economic growth has been largely subdued marked by sub-5 per cent growth for the last two fiscals, with growth during the fourth quarter of last fiscal (January-March 2014) coming in at 4.6 per cent.
Here are positives and negatives on the GDP growth surge:
* Early signs of a cyclical uptick in the broader economy
* A better-than-expected agricultural performance
* Visible surge in export growth during June quarter
* Energy, civic sector output exhibited a sharp pick-up
* Surge aided by a favourable base effect, including for manufacturing, power
* Moderation in services, especially financial and community services
* Delay in kharif sowing could reflect in lower agricultural output in Q2FY15
* Slowdown in electricity expected in coming quarters due to coal shortage