New Delhi/Mumbai: India Inc. on Thursday said the rise in the second quarter (Q2) GDP numbers showed signs of economic recovery.
"Growth numbers are in sync with the expectations and re-affirm that signs of recovery are in sight," said Pankaj Patel, President of Ficci.
"The performance of industrial sector has noted an improvement after dropping to the lowest in almost five years in the previous quarter... It is encouraging to see government's approach towards resolving GST related issues."
Patel said that the Reserve Bank's upcoming monetary policy review next week "will be a perfect timing to give another shot to boost the sentiment".
"The government should look at further consolidating its reform agenda in the forthcoming Union Budget 2018-19 to be announced two months from now to give further boost to investment," Patel added.
According to Anis Chakravarty, Lead Economist, Deloitte India, the latest set of numbers showed improved performance of manufacturing that could have possibly been affected by implementation of the GST from July 1, 2017.
"High frequency indicators such as auto sales suggest that demand has recovered since then and manufacturing could see better numbers in the quarters ahead," Chakravarty said.
"A pick up in mining activity was also clearly visible and bodes well for the economy. The agriculture sector seems to have underperformed given the normal rainfall and kharif output."
Official data on Thursday showed that a rise in the manufacturing sector's output pushed India's growth rate higher to 6.3 per cent during the second quarter of 2017-18.
On a sequential basis, India's GDP growth for Q2 of the current fiscal went up to 6.3 per cent, from 5.7 per cent reported during the first quarter of 2017-18.
The Central Statistics Office's (CSO) data disclosed that GDP for Q2 stood at Rs 31.66 lakh crore, or a growth of 6.3 per cent.