GDP Grows by 6.3 Percent in Q2, Arun Jaitley Says 'Impact of Demonetisation, GST Behind Us'

New Delhi: The economy grew by 6.3 per cent in July-September, reversing the slow GDP growth in the five previous quarters.

The rebound was aided by a rise in manufacturing. The GDP growth had hit a three- year low of 5.7 per cent in the first quarter of 2017-18. It was 7.5 per cent in the September quarter of 2016-17.

Finance Minister Arun Jaitley also said the growth boost was due to rise in manufacturing. “The impact of demonetisation and the Goods and Services Tax (GST) is behind us. Hopefully, growth in coming quarters will be on upward trajectory," Jaitley said.

He said the Q2 GDP growth at 6.3% marks reversal of a five-quarter declining trend.

According to Central Statistics Office (CSO) data, the economic activities that registered growth of over 6 per cent in the second quarter are manufacturing, electricity, gas, water supply, other utility services and trade, hotels, transport and communication, and services related to broadcasting.

The agriculture, forestry and fishing sector is estimated to have grown by 1.7 per cent.