Impact of notes ban, GST behind us, says Jaitley as GDP growth recovers

New Delhi: Addressing the media in Delhi on GDP growth figures, Union Finance Minister Arun Jaitley on Thursday said that the growth in manufacturing has positively impacted the growth of Gross Domestic Product (GDP).

"The most significant aspect is the fact that this quarter's positive result has been impacted significantly by the growth in manufacturing," FM Arun Jaitley said.

Remaining optimistic of higher growth rate in the coming quarters, Jaitley said that though the last five quarters had witnessed a downward trend, GDP at 6.3 per cent marked the reversal of that trend.

"Demonetisation and GST's impact is behind us and hopefully in coming quarters, we can look for an upwards trajectory," he said.

Finance Secretary Hasmukh Adhia said that the GDP number may go up when it is finally revised.

India's economy grew at 6.3 percent in the second quarter of the financial year, official data showed on Thursday, rebounding from a sharp slowdown in the wake of high-profile reforms.

Government figures showed Asia's third-largest economy accelerated after five quarters of slowing growth, shaking off the lingering impact of a sudden cash ban and launch of a nationwide tax that had dragged growth to three-year lows.

TCA Anant, Chief Statistician of India, said the reversal after five quarters of decline "is very encouraging."

The upturn will come as a relief for Prime Minister Narendra Modi, who has been dogged by criticism over two major reforms that stalled India's much-needed economic expansion.

In the last 12 months, Modi government withdrew most of high-value banknotes from circulation in a snap move known as "demonetisation" and rolled out a national goods and services tax.