India Inc is upbeat about the "higher than expected" growth of gross domestic product (GDP) in the second quarter this fiscal and
expects the economy to return to 9 per cent growth soon.
"It only shows the resilience of the Indian economy, which can remain insulated from global shocks of the most troubled times and yet achieve such a growth rate," said Swati Piramal, president of the Associated Chambers of Commerce and Industry (Assocham).
Official data released Monday showed that the country's GDP expanded 7.9 per cent in the second quarter this fiscal, up from 6.1 per cent in the first quarter.
The bulk of the recovery was led by a 9.2-per cent growth in manufacturing, while mining and construction activities expanded by 9.5 per cent and 6.5 per cent, respectively. But the agriculture sector continued to be a major drag with a mere 0.9-per cent growth.
"Agriculture and its related sectors still remain grey areas and a matter of serious concern, as growth is hardly happening in them," Piramal said.
According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the latest GDP figures "are a further confirmation of the Indian economy's recovery".
"At this rate, we feel we can look to a near 7 per cent growth for the whole year," FICCI president Harshpati Singhania said.
"This spurt in GDP growth is remarkable because it comes despite the poor performance in the agriculture sector."
However, the FICCI president said the situation in the second half should be watched closely "as agriculture is likely to lag behind and commodity and energy prices are on the rise".
Economic Times
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