India sees GDP rebound to 6.3% in Q2

Source: Xinhua | 2017-12-01

INDIA’S economy grew at 6.3 percent in the second quarter of the financial year, official data showed yesterday, rebounding from a sharp slowdown in the wake of high-profile reforms.

Government data showed Asia’s third-largest economy grew for the first time in five quarters, shaking off the lingering impact of a sudden cash ban and launch of a nationwide tax that had pushed growth to three-year lows.

The official figures were slightly below expectations. A Bloomberg News survey of economists predicted GDP growth at 6.4 percent from a three-year low of 5.7 percent in the previous June-ended quarter.

But the upturn will come as a relief for Prime Minister Narendra Modi, who has been dogged by criticism over two major reforms that stalled India’s much-needed economic expansion.

In the last 12 months Modi’s government withdrew most of India’s high-value banknotes from circulation in a snap move known as “demonetisation” and rolled out a national goods and services tax.