Amid of the government high spending and hike in manufacturing and services, India will soon regain the position of the fastest growing major economy in October-November quarter.
According to the Reuters poll, the annual growth will be 6.9 per cent in the December Quarter which is the best figure in 2017. The range was though predicted from 6.4 percent to 7.3 per cent by the experts.
The figure of 6.9 made India ahead of china’s 6.8 per cent annual pace of October-December. India previously is labelled as the fastest growing country in the last three months of 2016.
After the huge changes of GST in July faced by the country, whether it will be positive or negative, the manufacturing and service industry is now emerging from the troubles and the expected improvements was expected as 6.3 per cent in July-September quarter.
Aditi Nayar, principal economist at ICRA said, “After muted activity until September, signs of a pick-up in economic growth are starting to appear”.
Rupee, the second weakest currency this year already loses about 1.6 per cent against dollar but the rise of gross domestic reading could lift domestic shares and boost the rupee.
The GDP data came in a row when the Modi government was criticised for the bad loan of the state banks and country’s biggest PNB fraud.
PM Modi is trying hard to accelerate the growth with higher state spending of Rs 2.1 lakh crore for the state bank recapitalisation. Keeping the election of 2019 in mind, he has increase the funds for the infrastructure and welfare projects to boost growth.
PM Modi was clear in his ideas while addressing at the India-Korea summit by saying that his government is working hard to create a stable business environment.
He said, “India is now ready for business. India is now free destination for enterprise.You will not find such a free and growing market anywhere in the world. I further assure you that whatever is required to promote and protect your investments will be done here”.
He added, “There are very few countries where you have three important factors of economy together. They are – Democracy, Demography and Demand. In India, we have all the three together”.