GDP Q3 FY2016

At last some cheers for the economy seen this year.

After all the downs that the market has seen this year, some sound positive news from economy point of view comes from GDP numbers.

GDP for Q3FY2016 has grown at 7.3%. This was slightly lesser than the Q2FY2016 which was 7.4% now revised to 7.7%. Although the GDP growth is slightly lower than the previous quarter, looking seasonal wise, economy has performed way better that last year i.e., Q3FY2015 which was just 6.6%.

There are many reasons for this quarter slow growth. IIP for last month seen a drastic decrease and posted a growth of -3.2%. Chennai floods also had some impact on the GDP growth for this quarter. There are also so many global factors that has effect Global growth and India Growth.

At current prices, Economy has grown at 9.2% in Q3 vs. 6.4% in Q2 vs. 8.7% in Q1. so, this includes our inflation and deflation also.

The Gross Value Added which is now looked as a major tool is seen at 7.3%, which is greater than previous year 7.1%.

The full year GDP forecast has been revised to 7.6% from 7.2%.

The manufacturing sector is expected to grow at 9.5 percent in FY16 as compared to growth of 5.5 percent in FY15.

Trade, hotels and transport & communication and services related to broadcasting is expected to grow at 9.5 per cent compared to 9.8 per cent previous year.

Financial, insurance, real estate and professional services sector is expected to grow at 10.3 per cent compared to 10.6 per cent in the previous year.

The growth in the agriculture, forestry and fishing, mining and quarrying, electricity, gas, water supply and other utility services, construction and public administration, defence and other services  is estimated to be 1.1 per cent, 6.9 per cent, 5.9 per cent, 3.7 per cent and 6.9 per cent, respectively.

So, If all goes well, India is on way to post greater GDP numbers than last year.