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NEW DELHI : India’s gross domestic product (GDP) expanded at 6.3% in the September quarter, slower than the 8.4% growth seen in the same time a year ago, as manufacturing output contracted and the base effect waned, official data showed.

India’s economy had grown at 13.5% in the first quarter and the second quarter growth reported on Wednesday is in line with the RBI’s forecast. The Central bank has forecast a 7% growth in the current financial year. 

Data from the ministry of statistics and programme implementation showed that government spending in the September quarter declined by 4.2% from the year ago period to 3.36 trillion. But data also showed some silver lines. Fixed investments or gross fixed capital formation (GFCF) has seen a 10.4% growth in the September quarter to 13.2 trillion, giving hopes to policy makers that investments are picking up in the economy. 

Private consumption too showed a 9.7% year-on-year growth to 22.3 trillion in the September quarter, suggesting that this could further help in driving investments. 

Farm sector too showed robust growth in spite of a contraction in rice production. Agriculture, forestry and fishing output showed 4.6% growth in the September quarter compared to 3.2% growth in the same time a year ago.

Manufacturing sector output contracted 4.3% in the September quarter while mining and quarrying output witnessed a 2.8% contraction, data showed. 

ABOUT THE AUTHOR

Gireesh Chandra Prasad

Gireesh has over 22 years of experience in business journalism covering diverse aspects of the economy, including finance, taxation, energy, aviation, corporate and bankruptcy laws, accounting and auditing.
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