GDP growth for the first half of the financial year (April-September) was 6 per cent compared with 7.7 per cent in the year-earlier period. GVA growth was at 5.8 per cent compared with 7.2 per cent over the same period. This indicates that perhaps the impact of demonetisation and GST is now behind us and hopefully in the coming quarters we can look for an upward swing. The most significant aspect is that this quarter’s positive result has been impacted significantly by growth in manufacturing. The latest set of numbers on growth reveals that activity levels were recovering from the disruption caused in the first quarters for various adverse effects and it is rewinding to the economical advantage. The break-up showed improved performance by manufacturing that could have possibly been affected by the implementation of the GST. Agriculture, however, remained a cause for concern but that can be overcome with incentives offered to farmers and good monsoon in several sectors is a welcome sign. So, the BJP government have come up with positive results despite the taunts of the opposition parties that India will fall economically due to the demonetisation reform and the GST implementation recently. It is the revival at its best.
(The views expressed by the author in the article are his/her own.)