The Central Statistics Office (CSO) released estimates of GDP and related parameters for Second Quarter of 2015-16 today. The Finance Ministry analysed the data and made its observation that the GDP growth rate in the second quarter of the current Financial Year 2015-16 is greater than the growth in the First Quarter. GDP growth (measured in terms of constant 2011-12 market prices) for Second Quarter (Q2) of 2015-16 is estimated to be 7.4 per cent. The GDP growth has picked-up from 7.0 per cent in Q1 of 2015-16.

The Finance Ministry further 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, with the trade and transport services leading the way. Overall, the Ministry is expecting the economy to grow in the vicinity of 7.5 per cent in FY 2015-16.

Economic growth outlook strengthened as manufacturing and services recovery supports a higher annual growth projection. The Ministry reports second-quarter GDP growth exceeded first-quarter growth, driven chiefly by a strong pickup in manufacturing and sustained service sector strength, with trade and transport services leading; fixed investment shows signs of revival, and on this basis the Ministry projects annual growth for the financial year to be in the vicinity of its stated forecast.