It seems the first sign of acche din has finally arrived. India’s economic growth back to track after nine consecutive quarters and registered 5.7% growth in the April-June quarter, powered by manufacturing and services sectors.
According to the central statistics office the economy grew at an annual 5.7% rate in the June quarter, up from last querter’s 4.6%. Last year it was 4.7%.
The first quarter of the current fiscal year was also the highest in last two 
years’ result.
While the manufacturing sector registered an annual growth of 3.5%, higher than the previous quarter’s 1.4%, the services sector is up by 6.8% in the June quarter compared to last quarter’s 6.4% and 7.2% in the previous year.
The finance ministry said, “With improvement witnessed in some important sectors including manufacturing as well as in the performance of exports along with the measures taken by the government, the economy can be expected to show further improvement in the remaining part of the year.”
Times of India quoted, DK Joshi, chief economist, Crisil, as saying, “GDP growth has largely been lifted due to a weak base and partly due to improved sentiments following a decisive election mandate.”
Chandrajit Banerjee, director general at the Confederation of Indian Industry said, “In order to convert the first signs of revival into a full-fledged recovery, it is necessary that the government continues on its path of implementing the reforms agenda which would restart the investment cycle and revive demand in the economy.”
The Modi government has promised to revive Asia’s third-largest economy by ending policy paralysis which had been slowing down the growth for the last three years. The government had announced several steps in its first budget to restore economic growth, job creation and FDI in various sectors including manufacturing sector, defence and railways.
Tags: GDP GDP up by 5.7% Indian economy
