The growth cemented India's position as the fastest growing major economy, clocking higher expansion rate than China's 6.7% in the same quarter
New Delhi: The Indian economy grew at 15-quarter high of 8.2% in the April-June quarter of current fiscal on good show by manufacturing and farm sectors, according to the government data released on Friday.
The growth cemented India's position as the fastest growing major economy, clocking higher expansion rate than China's 6.7% in the same quarter.
The increased rate of growth suggests that the pullback effects of demonetisation and graduation to the goods and services tax (GST) are over or have subsided.
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The gross domestic product (GDP) at constant (2011-12) prices in the first quarter of 2018-19 is estimated at Rs 33.74 lakh crore, as against Rs 31.18 lakh crore in the same quarter of 2017-18, showing a growth rate of 8.2%, a Central Statistics Office statement said.
The quarterly GVA (Gross Value Added, which implies GDP minus taxes) at basic price at constant (2011-2012) prices for Q1 of 2018-19 is estimated at Rs 31.63 lakh crore, as against Rs 29.29 lakh crore in Q1 of 2017-18, showing a growth rate of 8% over the year-ago period.
The previous high quarterly GDP growth was recorded in July-September period in 2014-15 at 8.4%.
As per the data, the quarterly GVA at basic prices for Q1 2018-19 from manufacturing' sector grew by 13.5% as compared to contraction of 1.8% in Q1 2017-18.
The Quarterly GVA at basic prices for Q1 2018-19 from agriculture, forestry and fishing' sector grew by 5.3% as compared to growth of 3% in Q1 2017-18.
“Despite an uncertain international environment and volatile crude oil prices, India’s sustained growth reflects its strong resilience to adverse global conditions, because of strong economic fundamentals. The encouraging growth rates in agriculture, manufacturing and construction show that the growth momentum continues to be broad based. In addition, one also expects favourable monsoons to further boost agricultural output and rural consumption in the coming quarters,” NITI Aayog member Bibek Debroy said in a statement, reacting to the news.
As for hard data, the growth can be attributed to the manufacturing sector's growth of 13.5% in April-June, up from -1.8% in the same period last year; the growth of the index of industrial production (IIP) of 5.2% (up from 1.9% of 2017), and the growth of the private final consumption expenditure (PFCE), in inflation-adjusted prices, of 8.6% in the quarter (up to Rs 18.52 lakh crore from Rs 17.05 lakh crore).
The World Bank had noted last year that India had overtaken France to become the world's sixth largest economy. India's GDP stood at $2.597 trillion (Rs 178 lakh crore) in 2017 in current prices at the market exchange rates, ahead of France whose GDP stood at $2.582 trillion (Rs 177 lakh crore) in 2017.
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