November 28- India’s economy expanded at a six-quarter high of 8.2 per cent in the July–September quarter, buoyed by strong manufacturing activity as factories stepped up production ahead of an expected consumption boost following the Goods and Services Tax (GST) rate cuts, according to government data.
The latest GDP print marks an acceleration from the 7.8 per cent growth recorded in the previous April–June quarter and is significantly higher than the 5.6 per cent growth seen in the same period a year ago.
A key driver of this performance was the manufacturing sector, which accounts for about 14 per cent of India’s Gross Domestic Product. Manufacturing output grew 9.1 per cent in the second quarter, a sharp improvement from the modest 2.2 per cent growth registered in the corresponding quarter of the previous financial year.
Economists say the upbeat manufacturing numbers reflect improved business sentiment and restocking by companies anticipating stronger festival-season demand, aided in part by lower GST rates on several consumer goods.
The robust second-quarter growth has reinforced optimism about the economy’s momentum, with policymakers expected to closely track whether the manufacturing-led recovery sustains in the coming quarters.
