There was good news for the Indian economy on Friday, when data released by the Central Statistics Office (CSO) showed that the economy had grown at its fastest in two years between April and June, the first quarter of this fiscal year.
The Gross Domestic Product (GDP) grew by 5.7 percent in April-June, the highest in nine quarters.
This growth, whether it is seen as a spurt or a turnaround, does hold significance for citizens, companies and investors.
The Q1 growth that is said to have been backed by improved performances of the manufacturing and the services sector, suggests a faster industrial growth, which could expand job opportunities for employees. With capacities of companies growing under the growth, salaries could also rise.
This in turn, could suggest higher spending and could set the ball rolling for a faster economic growth as revival of demand is further likely to push corporate income.
The manufacturing sector grew an annual 3.5 percent higher compared to the previous quarter, while the services sector grew by 6.8 percent.
Investors could also see a bigger corporate profitability in the domestic manufacturing sector and could cater to Modi's 'Made in India' vision by helping domestic businesses grow. Thus, the GDP growth could signal a good time for local businesses.
The economic sentiments are already said to be improving after Narendra Modi came to power, and more investments would ensure further expansion of businesses, which again, would benefit employees.
