GDP growth recovers to 6.3 pct in second quarter of FY18

India's Gross Domestic Products (GDP) on Thursday surged by 6.3 percent in the September quarter, thus indicating healing in the Indian economy from the shake off of Demonetisation and Goods and Services Tax (GST) last year.

The data released by the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation estimated GDP for the second quarter (July-September) Q2 of 2017-18, both at constant (2011-12) and current prices, along with the corresponding quarterly estimates of expenditure components of the GDP.

The economic activities which registered growth of over 6.0 percent in Q2 of 2017-18 over Q2 of 2016-17 are 'manufacturing', 'electricity, gas, water supply and other utility services and 'trade, hotels, transport and communication and services related to broadcasting'.

However, the growth in the 'agriculture, forestry and fishing', 'mining and quarrying', 'construction' 'financial, insurance, real estate and professional services' and 'Public administration, defence and other services' is estimated to be 1.7 percent, 5.5 percent, 2.6 per cent, 5.7 percent and 6.0 percent respectively, during this period.

In terms of manufacturing, the data estimated the quarterly GVA at basic prices for Q2 of 2017-18 from 'manufacturing' sector grew by 7.0 percent as compared to growth of 7.7 percent in Q2 of 2016-17.

The private corporate sector growth (which has a share of over 70 percent in the manufacturing sector) as estimated from available data of listed companies with BSE/NSE is 11.4 percent at current prices during Q2 of 2017-18. The growth in quasi - corporate and unorganized segment (which includes individual proprietorships and partnerships and khadi and village Industries has a share of around 20 percent in the manufacturing sector) has been estimated using IIP of manufacturing.

IIP manufacturing registered growth rate of 2.2 percent during Q2 of 2017-18 as compared to growth of 5.5 percent in Q2 of 2016-17.

Mentioning a surge in the electricity, gas, water supply and other utility services, the data estimated quarterly GVA at basic prices for Q2 of 2017-18 from 'Electricity, Gas, water supply and other utility services' sector grew by 7.6 percent as compared to growth of 5.1 percent in Q2 of 2016-17.

On the other hand, it noted quarterly GVA at basic prices for Q2 of 2017-18 from 'Construction' sector grew by 2.6 percent as compared to growth of 4.3 percent in Q2 of 2016-17.

Key indicators of construction sector, namely, production of cement and consumption of finished steel registered growth rates of (-) 0.4 percent and 4.1 percent respectively during Q2 of 2017-18 as compared to 3.4 percent and 6.5 percent respectively during Q2 of 2016-17.

The quarterly GVA at basic prices for Q2 of 2017-18 from this sector grew 5.7 percent as compared to growth of 7.0 percent in Q2 of 2016-17. Major component of this industry is the real estate and professional services which has a share of 75 percent.

The key indicator of this sector is the quarterly growth of corporate sector for computer related activities which is estimated from available data of listed companies. The other indicators of this sector, viz., aggregate bank deposits and bank credits have shown growth rates of 8.6 per cent, and 6.8 per cent, respectively as on September 2017 as against growth of 10.8 percent and 10.1 percent respectively as on September 2016.