India's economic growth pace picked up in the three months ending in September 2017, from the past disruptions encountered after the ban of high-value banknotes in November 2016. The businesses have started to overcome troubles after the launch of Goods and Services Tax (GST) in July, which aims at transforming India’s 29 states into a single customs union; but it has hit millions of small businesses due to complex rules and technical glitches.
Gross domestic product grew 6.3% in July-September, its fastest pace in three quarters, the data by Thomson Reuter showed. Big companies have largely adjusted to the changes while benefiting from reduced logistics costs. Prominent Indian firms had their best profit growth in last six quarters in July-September, according to Thomson Reuter’s data.
In July-September, auto sales, manufacturing, construction, electricity generation grew more quickly than in the previous quarter. Annual growth in consumer spending, which powers more than half of the economy, slowed to 1.5% in the September quarter from 6.7 % in the previous quarter. The Thomson Reuters agency expects the Indian economy to grow 6.7% in the fiscal year ending March 31, and 7.5% the following year.
For more information, please see https://www.reuters.com/article/us-india-economy-gdp/india-posts-stronger-growth-as-businesses-adjust-to-new-tax-idUSKBN1DU1LV