GDP growth breaks 5-Q slide

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We should wait for the growth rates over the next 3-4 quarters before we can reach a definite conclusion. Jaitley said the Goods and Services Tax (GST) started with different tax rates and they have rationalised rates on many items.

To scale to 10 per cent rate is "very challenging" and it will not depend on domestic factors only but on how the world is moving, he said. "Also, the government should look at further consolidating its reform agenda in the Union Budget to be announced two months from now to give further boost to investment". In the fourth quarter of 2013-14, economy had grown at 4.6 per cent.

"It is likely that when revised estimates are prepared, indirect tax collections for this period may actually be higher than what we have reported", Anant said at a press conference while admitting that the GST introduced a "certain level of statistical challenge" in compiling the growth numbers.

Commenting on the Q2 GDP data CII's Director General Chandrajit Banerjee said: "The revival of the GDP growth print reinforces the perception that the economy is on a robust recovery phase and the short-term disruptions caused by demonetisation and GST are behind us". "Gross fixed capital formation has also picked up from last year's lacklustre pace", he said.

Former finance minister P Chidambaram, however, said 6.3% growth was "far below the promise of Modi government and potential of the well managed Indian economy".

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The GDP for the July-September quarter showed a growth rate of 6.3 per cent after the previous quarter recorded a three-year low of 5.7 per cent.

"Traditionally, July-September is a quarter where a lot of production takes place to cater to festive demand".

"Indias economic stress continues; GDP far below at 6.3 pc compared to 7.5 pc of Q2 of previous year! - a close scrutiny reveals the real picture of the economic mess created by BJP Government", he said in a statement.

According to Central Statistics Office (CSO) data, the economic activities that registered growth of over 6 percent in the second quarter are manufacturing, electricity, gas, water supply, other utility services and trade, hotels, transport and communication, and services related to broadcasting.

TMC chief and West Bengal Chief Minister Mamata Banerjee was, however, more vocal in her criticism and claimed that a growth of 6.3 per cent was "no growth".

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