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Indian economy has bottomed out: data
Last Updated: 2017-10-12 08:18 | Xinhua
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High-frequency economic data disclosed recently have shown that India's economic growth is under a state of slow recovery after hitting three years' bottom of 5.7 percent in the first quarter (April - June) of fiscal 2017-18.

The recent disclosure suggested the economy was showing signs of improvement. India's manufacturing activity improved in September, while the manufacturing PMI was 51.2, the second consecutive month of moderate expansion.

India's services sector is also improving. India's services PMI rose sharply to 50.7 in September from 47.5 in August. This is the first time the index has been above 50 for three months.

Manufacturing, a drag on India's economy, improved markedly in August. India's industrial production index (IIP) rose to 4.9 percent in August from a year-on-year rise of 1.2 percent in July, according to data. This is the second consecutive month that the index has been on the rise, showing that India's manufacturing sector is improving.

India's economy grew by just 5.7 percent in the April-June period, the lowest level in three years, as a result of last year's demonetization and the commodity and services tax reforms introduced in July.

Some Indian economists believe that India's economic slowdown is temporary and growth will see a recovery in the second half of the year.

Urjit Patel, the governor of the Reserve Bank of India, said recently that the economy was showing signs of improvement, with growth likely to exceed 7 percent in the last two quarters of this fiscal year.

Ravi Shankar Prasad, an Indian lawyer, politican and the current Union Minister holding Law and justice and Ministry of Information Technology portfolio in the Indian government, also said that the decline in GDP growth in the country between April and June was temporary and the economy would begin to rebound from July to September because of strong macroeconomic fundamentals.

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