Thanks to strong momentum from the manufacturing segment.
After a subdued performance in the first quarter, India’s economy rebounded 6.3% YoY in 2QFY18 mainly due to strong performance from the manufacturing segment which grew 7% YoY.
According to Standard Chartered, the growth reflects the economy’s gradual recovery from the change in policy as the goods and services tax (GST) was officially put in place this year.
The GST replaced many indirect taxes in the country following its implementation on July.
Maybank adds that manufacturers have since re-stocked on goods after the GST implementation leading to the pickup in growth.
However, the services growth slowed to 7.1% YoY in 2QFY18. Similarly, growth in farm sector dropped to 1.7% YoY in the same period.
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