Q2 GDP at 7.4% shows path of recovery: FICCI
Helped by a pick up in manufacturing, India's economy grew by 7.4% in July-September, outpacing China, in percentage terms, to become the fastest growing major economy.
Commenting on the second quarter GDP numbers, Dr. A Didar Singh, Secretary General, FICCI said that the there has been an uptick in the GDP numbers and the economy is steadily moving on the recovery path, which is an encouraging sign.
"Both industry and services sector continue to support growth and the performance of agriculture sector has also noted an improvement. We need to maintain this momentum and move on to a higher growth trajectory, which calls for continuous reforms," added Singh.
Helped by a pick up in manufacturing, India's economy grew by 7.4% in July-September, outpacing China, in percentage terms, to become the fastest growing major economy.
While the gross domestic product or GDP of Asia's third-largest economy expanded 7.4% in Q2 from 7% in the previous quarter, growth rate of eight core infrastructure industries slowed to 3.2% in October.
He also said that the global economy has been volatile and domestic demand is restrained. Both Government and RBI have been factoring in the aberrations and amidst this situation it is critical to keep the optimism intact.
"It is important to remain proactive on the reforms front and focus on implementation" said Dr. Singh.
On Tuesday, in the monetary policy review meet, the Reserve Bank of India (RBI) kept key policy rates unchanged at 6.75%.
The move from Governor Raghuram Rajan is in line with market and experts' expectations after a surprise 50 bps cut effected in the last monetary policy meet.
The Cash Reserve Ratio (CRR) or the amount of reserves the bank has to keep with the apex bank has been kept unchanged at 4% of net demand and time liability (NDTL).