The fall in bell curve of India’ economic fallout from GST and Demonetization seems to be complete with growth back in positive territory. In reversal of slowdown reported in last five quarters the economy grew by 6.3 per cent in July-September.
“The impact of demonetisation and the Goods and Services Tax (GST) is behind us” Finance Minister Jaitley said. As per him the most significant contribution to growth is coming from Manufacturing and the numbers indicate that the investment is moving up.
Coming shortly after Moody’s recent upgrade of India’s sovereign credit the growth trajectory is expected to gain a momentum of its own.
The economic activities that registered growth of over 6 per cent in the second quarter of 2017-18 year-on-year are manufacturing, electricity, gas, water supply and other utility services, trade, hotels, transport and communication and services related to broadcasting.
The growth in agriculture, forestry and fishing was 1.7 per cent, mining and quarrying 5.5 per cent, construction 2.6 per cent, and ‘financial, insurance, real estate and professional services’ 5.7 per cent.
