"Happy that the July-Sep quarter has registered a growth rate of 6.3%".
Madhya Pradesh Chief Minister Shivraj Singh Chouhan on Thursday said latest Gross Domestic Product (GDP) estimates show economic activities are increasing in the country. A Reuters poll of economists had predicted a growth rate of 6.4 per cent, while various other bodies projected the rate between 5.9 per cent and 7.1 per cent.
The GST was introduced on July 1 across the country. "The growth in the "agriculture, forestry and fishing", "mining and quarrying", "construction" "financial, insurance, real estate and professional services" and 'Public administration, defence & 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", a press release by the government said.
"It doesn't appear that inventory accumulation has led to GDP increase in Q2".
Kharif foodgrain production was down 2.8 per cent this year as against 10.7 per cent growth last year.
"Indias economic stress continues; GDP far below at 6.3 pc compared to 7.5 pc of Q2 of previous year! - a close scrutiny reveals the real picture of the economic mess created by BJP Government", he said in a statement.More news: Threats to Deepika, Bhansali unacceptable: Nana Patekar
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The net effect of all these is that India is getting closer to a situation where the country can spend what it earns, and borrows relatively less, he said.
Small and medium enterprises and exporters, however, continue to face return filing issues and working capital constraints due to a slow release of refunds.
"The Q2 growth pick up is nearly entirely due to the growth pick up in manufacturing, which came to a standstill prior to GST due to destocking", D.K. Srivastava, Chief Policy Advisor at EY India, said.
"The strong rebound in growth is a reflection of solid economic management by the Modi Government".
In the services sector while trade, transport did well, the government finances grew rather slowly because of a muted deposit and loan growth in the banks. Great news that quarterly GDP growth accelerates to 6.3 per cent against 5.7 per cent from the previous quarter.
Earlier this month, rating agency Moody's upgraded India's credit rating to Baa2 from Baa3 and changed its India outlook to positive from neutral.