India's second quarter GDP came in more or less on expected lines at 6.3 per cent for the period ending Sept 30, 2017. The gross value added (GVA) was slighly below estimates at 6.1 per cent for the second quarter. GVA is an important number that and a productivity metric that measures the contribution to an economy, producer, sector or region.
India's first quarter GDP had slumped to a 3-year low of 5.7 per cent largely due to the GST implementation and the impact of de-monetization and the latest quarterly numbers suggested some sort of recovery in the economy.
Manufacturing growth came in at 7 per cent vs 1.2 per cent QoQ (vs 7.7% YoY), while the construction growth at 2.6 per cent vs 2 per cent.
The agriculture sector reported disappointing numbers at 1.7 per cent vs 2.3 per cent, quarter on quarter. There were already indications in July-September quarter that the manufacturing sector was recovering. Auto sales, manufacturing, electricity generation grew more quickly than in the previous quarter.
Most of the other numbers were more or less in line with estimates. Indian benchmark indices had sold-off ahead of the GDP numbers, with the Sensex slumping 435 points.
Today's GDP numbers were more or less in line with estimates and were not too much of a surprise.