India's economic growth pace picked up to 6.3 percent in the three months ending in September, halting a five-quarter slide as businesses started to overcome teething troubles after the bumpy launch of a Goods and Services Tax (GST).
GST has consolidated central and local taxes including value added tax, excise and service tax into a single levy.
Reiterating the structural reforms would benefit the economy in the medium and long-term, the FM, responding to questions on Q2 growth estimates, said: "The GST has made doing business and trade very easy".
There are expectations of a rebound in economic activities after GDP growth of a mere 5.7 per cent in the first quarter of the fiscal.
Syncing with recent Moody's upgrade of India's sovereign credit for the first time in almost 14 years, the growth buoyancy comes at a time when the Modi Government has been facing Opposition charges of wrong implementation of demonetisation and GST that disrupted the $2.4-trillion economy. It expects the economy to grow at 6.7 per cent this fiscal and rise to 7.5 per cent in 2018-19.
His comments come ahead of the second quarter GDP data that will be released by the Central Statistics Economy later this evening.
"Manufacturing reported growth of 7 per cent, electricity, gas and water supply at 7.6 per cent, and trade, hotels, transport and communication grew at 9.9 per cent", he said.
Finance Minister Arun Jaitley has said, the GDP rate at 6.3 percent marks the reversal of declining trend in the last five quarters.
The Finance Minister further said, "The deceleration in overall growth witnessed since the first quarter of the last fiscal has been reversed and the economy now seems to have weathered the transitional challenges experienced earlier in the year and appears poised for a durable recovery going forward".
Speaking at the HT Leadership Summit here, he said India has done well by growing at 7-8 per cent during the last three years.
The agriculture, forestry and fishing sector is estimated to have grown by 1.7 percent.
Modi government hopes the ratings upgrade can attract more foreign investors, who pumped United States dollars 15 billion into Indian equities in July-September, up 44 percent from the previous quarter.
TMC chief and West Bengal Chief Minister Mamata Banerjee was, however, more vocal in her criticism and claimed that a growth of 6.3 per cent was "no growth".