India is growing and how! Highest in two years, GDP soars to 8.2% in first quarter of current fiscal

New Delhi, September 1: Soaring high Indian economy has seen a major growth by 8.2% in the first quarter of the current fiscal which is ought to be the highest in over two years. Ascribing the high quarterly performance to reforms and fiscal farsightedness, Finance Minister Arun Jaitley said that India's GDP for the first quarter of this year growing at 8.2% in otherwise an environment of global turmoil represents the potential of New India.

The Finance Ministry has exuded confidence that the economy could exceed an estimated 7.5% growth in the current fiscal. Economic Affairs Secretary S C Garg said that the manufacturing sector grew by 13.5% which signals a very good turnaround in the sector. He said the construction sector also grew robustly at about 8.99%.

Economic Affairs Secretary Garg expressed confidence that India will definitely be the highest growing economy in the world. Fore sighting the need to achieve a double-digit growth, he said 10% growth might happen in one quarter or so but 10% for annual growth is very determined and very big thing. 

 

In a related development Reserve Bank of India said Nonfood credit growth in the system accelerated to 10.6% for July as compared to previous year, driven by loans to the services sector growing at the faster clip. Credit to the services sector grew 23% for the reporting period, up from the year-ago period's 4.9%.

Industry bodies have said India's economic growth of 8.2% in the April-June quarter is an outcome of reforms undertaken by the government in the last four years. FICCI President Rashesh Shah said the double-digit growth in manufacturing comes on the back of a low base but does reflect the positive momentum already seen in some of the key lead indicators of economic activity.

Commenting on the GDP growth data, Ph.D. Chamber of Commerce President Anil Khaitan said the effect of dynamic reforms undertaken by the government is becoming visible.