Former Prime Minister Manmohan Singh on Saturday downplayed the uptick in GDP growth at 6.3% in fiscal second quarter July-September from a three-year low in the first saying that at this rate it is not possible for NDA government to equal UPA govt’s 10-year average growth rate.
Addressing media, Manmohan Singh said, “There still remains considerable uncertainty over the growth of the GDP. The RBI forecasts that growth in 2017-19 will pick up to 6.7 per cent. However, even if the growth picks up to 6.7 per cent in 2017-18, Modiji’s four year average growth rate will be only 7.1 per cent. To equal the UPA’s ten year average, the economy will have to grow at 10.6 per cent in the fifth year. I would be happy if this was to happen but frankly I do not think it will.”
Manmohan Singh said that the demonetisation cost the country Rs 1.5 lakh crore in economy while GDP growth rate fell to 5.7 per cent in the first quarter. Singh said the BJP government’s GST version was ‘poorly designed’, ‘badly implemented’ and ‘brought about in such a tearing hurry’.
India’s GDP growth sharply rebound to 6.3% in fiscal second quarter July-September from a three-year low in the first quarter, as businesses sprung into economic activity ahead of a condensed festive season and accelerated production to build inventory after the implementation of GST. India’s GDP growth in the second quarter (Jul-Sep) accelerated to 6.3% from 5.7% in Apr-Jun and 6.1% in Jan-Mar, Central Statistics Office data showed. However, the pace of growth in Jul-Sep was still way below 7.3% recorded in the corresponding quarter a year ago.A sharp bounce in manufacturing growth rate at 7% in July-September from 1.2% in the preceding quarter was among the primary drivers behind the second quarter GDP growth acceleration. On the other hand farm growth slowed in second quarter to 1.7% from 2.3% in the preceding three-month period.
Construction activity also recorded a decent expansion with a growth rate of 2.6% in July-September vs 2% in the previous quarter. Industrial activity also saw a spike with 5.8% growth rate in second quarter vs 1.6% in the first quarter. Electricity output growth at 7.6% vs 7% also supported economic growth.
Quarterly GVA for Q2 of 2017-18 for Trade, Hotels and Transport & Communication and Services related to broadcasting grew by 9.9% on-year. Mining and quarrying growth also picked up significantly, accelerating to 5.5% in second quarter from 0.7% in the previous quarter.