The Gross Domestic Product (GDP) growth picking-up from 7.0 per cent in Q1 of 2015-16 grew by 7.4 percent in the second quarter (July-September) of 2015-16, majorly contributed by gross fixed capital formation, which added up to 29.9% of the total growth, rising by 6.8% from a year ago. The bulk of the increase in GDP was contributed by private consumption, which not only increased by 6.8% but accounted for 55.1% of the rise in GDP from a year ago. Also, government’s final consumption expenditure was up 5.2%, contributing as much as 10% to GDP growth.
As per the data released by the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, Gross Domestic Product (GDP) for the second quarter (July-September) Q2 of 2015-16, GDP at constant (2011-12) prices in Q2 of 2015-16 was estimated at Rs 27.57 lakh crore, as against Rs 25.66 lakh crore in Q2 of 2014-15, showing a growth rate of 7.4 percent. Quarterly GVA at Basic Price at constant (2011-12) prices for Q2 of 2015-16 was estimated at Rs 25.80 lakh crore, as against Rs 24.02 lakh crore in Q2 of 2014-15, showing a growth rate of 7.4 per cent over the corresponding quarter of previous year.
At current prices, GDP derived by adding taxes on products net of subsidies on products to GVA at basic prices, was estimated at Rs 32.66 lakh crore in Q2 of 2015-16, as against Rs 30.80 lakh crore in Q2 of 2014-15, showing a growth rate of 6.0 percent. GVA at basic price at current prices in Q2 of 2015-16, was estimated at Rs 30.26 lakh crore, as against Rs 28.76 lakh crore in Q2, 2014-15, showing an increase of 5.2 per cent.
The economic activities which registered growth of over 7.0 percent in Q2 of 2015-16 over Q2 of 2014-15 on are ‘trade, hotels and transport & communication and services related to broadcasting’, 'financial, insurance, real estate and professional services' and ‘manufacturing’. The growth in the ‘agriculture, forestry and fishing’, ‘mining and quarrying’, ‘electricity, gas, water supply & other utility services, ‘construction’ and 'public administration, defence and other services’ is estimated to be 2.2 per cent, 3.2 percent, 6.7 per cent, 2.6 per cent and 4.7 per cent, respectively, during this period.
The government expects the economy to grow in the vicinity of 7.5% during the current Financial Year 2015-16. Finance Ministry observed that the growth is being mainly driven by pick-up in the manufacturing sector, which has grown by 9.3 per cent in the Second Quarter. Similarly, the Fixed Investment is showing a sign of revival as it has grown by 6.8 per cent in the Second Quarter of current Financial Year 2015-16. Further, the Service Sector growth is still robust at 8.8 per cent in Q2 of 2015-16.
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