India's GDP accelerates at 7.4 percent in Q2FY16
Mayuresh Deshmukh / 01 Dec 2015
The Indian economy picked up pace and grew at 7.4 percent in second quarter of financial year 2016. The growth is in line with the expectations and faster than the growth of 7 percent in first quarter of this fiscal.
The Indian economy picked up pace and grew at 7.4 percent in second quarter of financial year 2016. The growth is in line with the expectations and faster than the growth of 7 percent in first quarter of this fiscal. The high growth is driven by pickup in industrial activity and investment demand. The Indian economy outpaced the Chinese economy which grew at 6.9 percent in the same quarter.
The manufacturing sector showed the substantial growth of 9.3 percent in gross value added (GVA) against 7.9 percent for same period last year. Electricity grew by 6.7 percent as against 8.7 percent same period last year. Trade, hotel, transport and communication grew at 10.6 percent against 8.9 percent. Construction slowed at 2.6 percent as against 8.7 percent. Mining and quarrying grew at 3.2 percent as against 1.4 percent. Agriculture and fishing grew at 2.2 percent as against 2.1 percent in the same period last year despite poor monsoon and 15 percent deficit in rain. Financial and public administration services slowed down to 9.7 percent and 4.7 percent against 13.5 percent and 7.1 percent same period last year. The above data reveal that this growth is not uniform and mostly driven by GVA of manufacturing sector.
The Growth in second quarter was more investment driven than consumption led. Gross fixed capital formation (GFCF) representing overall investment demand in an economy picked up a five-quarter high of 6.8 percent, signalling an investment revival. On the other hand private final consumption expenditure (PFCE) grew at 6.78 percent as compared to 7.10 percent in the same period last year.
The GDP growth which had declined to 7 percent in April-June quarter from 7.5 percent in the previous quarter raised concerns that the recovery was not shaping well. But the strong growth this quarter can help India to achieve the estimated government growth of 7.5 percent in 2015-16. In 2014-15 economy grew at 7.3 percent.
This good growth can provide a boost to economy in accelerating capital expenditure and improve business sentiments in the coming days.
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.