India Inc cheers as economy grows at two-year high of 8.2 per cent in Q1

With India’s economy growing at a two-year high of 8.2 per cent in the April-June quarter, industry bodies said on Friday that it was an outcome of reforms undertaken by the government in the last four years, and revival is on track.

The GDP growth in the April-June quarter, which cemented India’s position as the fastest growing major economy, came on the back of good performance by manufacturing and farm sectors, according to government data released today.

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“The recovery that is shaping up is broad based and there are clear signs of revival in domestic demand and investments. The double-digit growth in manufacturing comes on back of a low base but does reflect the positive momentum already seen in some of the key lead indicators of economic activity,” said Ficci President Rashesh Shah.

“The first quarter GDP numbers augur very well for the entire fiscal FY18. While it is early days, the Indian economy seems back to a solid trajectory for further gains in the next few quarters,” Assocham President Sandeep Jajodia said.

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

The previous high in quarterly GDP growth was recorded in the January-March quarter of 2015-16 at 9.3 per cent.