He has been grappling with slowing growth in the past five quarters, with the economy dragged down by subdued private investments, an unprecedented cash ban imposed a year ago and the introduction of a country-wide consumption tax in July.
"Growth numbers are in sync with the expectations and re-affirm that signs of recovery are in sight", said Pankaj Patel, President of Ficci. "This also indicates that perhaps the impact of two very significant structural reforms - demonetisation and GST - is behind us and hopefully in coming quarters we can look for an upwards trajectory", he said after the Central Statistics Office released the GDP data.
The GDP growth had hit a three-year low in the first quarter of 2017-18.
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.
Releasing GDP data in New Delhi today, Chief Statistician of India T C A Anant said the GDP growth has seen a reversal trend from declining trend in the last five quarters.
A day after Finance Minister Arun Jaitley claimed the "days of GST and demonetisation are behind us", he said on Friday that the Goods and Services Tax (GST) had made it easy for traders to spread business activities in any part of the country.
"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. "Gross fixed capital formation has increased from 1.6 per cent in Q1 to 4.7 per cent in Q2".
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Official data on Thursday showed that a rise in the manufacturing sector's output pushed India's growth rate higher to 6.3 per cent during the second quarter of 2017-18.
"Traditionally, July-September is a quarter where a lot of production takes place to cater to festive demand".
Gross domestic product (GDP) will grow 6.4% in the July-to-September quarter, according to the median estimate of 46 economists polled by Bloomberg.
While manufacturing grew rapidly at 7% in the September quarter from merely 1.7% in the first quarter (April-June), the growth in electricity and other utilities was recorded at 7.6% and it was nearly 10% in trade, hotel, transportation and communication.
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.
Mining also posted a sharp uptick in growth to 5.5 per cent from a decline of 0.7 per cent in the previous quarter.