GDP looks brighter this time at 7.3 but what next?

India’s GDP growth at 7.3 per cent in Q2FY17 vs 7.1 per cent in Q1FY17. The GDP growth stood at 7.6 per cent in Q2FY16. The quarterly improvement in GDP data may get impacted in second half of the financial year due to hit by an economy-wide cash-crunch following the unexpected ban on Rs 500 and Rs 1000 currency notes.

Manufacturing sector growth has declined and remined at 7.1 per cent in Q2FY17 against 9.1 per cent in Q1FY17. Electricity, gas, water supply and other sector growth stood at 3.5 per cent in Q2FY17 while 9.4 per cent in Q1FY17. October core sector output stood at 6.6 per cent vs 5 per cent in September.

Services sector growth stood at 8.85 per cent in Q2FY17 against 9.6 per cent in Q1FY17. Mining sector’s growth at -1.5 per cent in Q2FY17 vs. 0.4 per cent. Construction sector's growth at 3.5 per cent in Q2FY17 while 1.5 per cent in Q1FY17.

Past years data has shown that, GDP growth stood at 5.4 per cent, 6.6 per cent, 7.2 per cent and 7.6 per cent in FY13, FY14, FY15 and FY16 respectively. On the same time, Government has forecasted that GDP growth to remain at 7.3 per cent in FY17.