The Indian economy grew 5.3% during the July-September quarter, marginally better than market expectations of 5.1%. The improvement in the gross domestic product (GDP) was largely due to growth in services, mining, power and construction activities.
The growth was offset by marked decelerations in manufacturing,agriculture and financial services.
According to the data released by the Central Statistics Office, the GDP growthin the second quarter was higher when compared with 5.2% growth of the same period in the previous fiscal.
Manufacturing sector was a major dampener with a growth of 0.1% during the second quarter as against the 1.3% registered in the same period of the previous year.
"Even though the services sector held the GDP numbers up this quarter, the manufacturing number is a strong reminder that reforms are yet to begin," said Anis Chakravorty, senior director at Deloitte.
"The concerns on fiscal deficit target (of 4.1% of GDP) have decreased on expectations of the government, which in turn will help GDP, but strong reforms are needed on the land acquisition, goods and services taxation front," he said.
The community, social and personal services sector grew 9.6% during the period as against 3.6% of the comparable period of FY2014. In the first half of the current fiscal (April-September), the segment grew 9.4% as against the 6.8% of the previous year's first half.
