GST made doing business easier, increased market size for traders: Jaitley

Adjust Comment Print

Striking a note of caution, the Congress also said the rebound in economic growth is nothing but what it called the Modi governments "desperate spin to hide its luminous underperformance".

The growth in the agriculture slowed to 1.7% compared to 2.3% in the last quarter and 4.1% in the same quarter previous year.

The Finance Minister on Thursday said the country was back on the growth trajectory and the latest GDP boost from 5.7 per cent in the first quarter to 6.3 per cent in the second quarter would give fillip to job creation in the country.

More news: Samsung likely previewing Galaxy S9 and S9 Plus at CES

The government accounts data, released earlier in the day, showed that the Centre's fiscal deficit touched 96 per cent of the budget estimate in the first seven months of the year. In the fourth quarter of 2013-14, economy had grown at 4.6 per cent.

Jaitley further said, "Government's reforms to push economic growth are working, (and it) can be seen from that: manufacturing has shown robust growth of 7 per cent in Q2 and services at 7.1 per cent".

New Delhi:Finance Minister Arun Jaitley said the Goods and Services Tax (GST) has made doing business easier for traders by expanding the market place and reducing tax compliance burden. Gross fixed capital formation has increased from 1.6% in Q1 to 4.7% in Q2.

More news: Ivanka to lead American team for business summit in India

"The September quarter GDP growth, he added, is quite a significant trend reversal and has been driven by pick-up in manufacturing".

Former finance minister P Chidambaram said he was happy that the July-September quarter has registered a growth rate of 6.3 per cent and described it a "pause" in the declining trend of the last five quarters. The reasons for the foreseen growth recovery are many: a rise in industrial production and exports, restocking by businesses after the transition to GST and some major festivals that would have boosted consumer demand. The growth in construction sector was projected at 2.6% compared to 4.3% in the same quarter previous year.

While manufacturing grew rapidly at 7% in the September quarter from merely 1.7% in the first quarter (April-June), the growth in electricity and other utilities was recorded at 7.6% and it was nearly 10% in trade, hotel, transportation and communication. The growth in agriculture, forestry and fishing was 1.7 per cent, mining and quarrying 5.5 per cent, construction 2.6 per cent, and financial, insurance, real estate and professional services 5.7 per cent.

More news: Kobolds and Catacombs Expansion Releases for Hearthstone on December 7

Comments