Economy

India sees GDP rebound as businesses adjust to GST

India’s economy grew 6.3 percent in the three months ending September from a year earlier, in line with expectations and faster than a provisional 5.7 percent in the previous quarter, government data showed on Thursday.

Data released on Thursday showing faster growth could help Prime Minister Narendra Modi, who has been facing criticism over the hasty July launch of a goods and services tax (GST).

The tax was aimed 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.

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Gross domestic product grew 6.3 percent in July-September, its fastest pace in three quarters, compared with 7.5 percent a year earlier, the data showed.

On Nov. 17, Moody’s upgraded India’s sovereign credit rating for the first time in nearly 14 years, saying continued progress on economic and institutional reforms would boost its growth potential.

The agency expects the economy to grow 6.7 percent in the fiscal year ending March 31, and 7.5 percent the following year.

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