Although the reported GDP numbers have seen a dip year-on-year, the NITI Aayog on Friday said the growth would become more robust in 2018-19.
"The second half GDP growth in 2017-18 has risen to 7 per cent, bringing the annual growth rate to 6.5 per cent. Economic activity has been picking up over the last three quarters and can be expected to strengthen in the coming period with the manufacturing PMI now reading at a five-year high of 54 per cent, and FMCG demand picking up briskly. Hence, the GDP growth will become more robust in 2018-19," NITI Aayog Vice Chairman Rajiv Kumar noted.
He further said the estimates assume significance in the wake of the fact that the higher second half growth came despite a weaning of public sector expenditures which had peaked in 2016-17 on account of the implementation of the recommendations of the Seventh Pay Commission.
As per data released by the Central Statistics Office (CSO) earlier in the day, the growth in GDP during 2017-18 was estimated at 6.5 per cent, as compared to the growth rate of 7.1 per cent in 2016-17. Real GDP at constant (2011-12) prices in the year 2017-18 is likely to attain a level of Rs 129.85 lakh crore, as against the Provisional Estimate of GDP for the year 2016-17 of Rs 121.90 lakh crore, released on May 31, 2017.
On the other hand, Gross Value Added (GVA) at basic constant prices (2011-12) is anticipated to increase from Rs 111.85 lakh crore in 2016-17 to Rs 118.71 lakh crore in 2017-18. Anticipated growth of real GVA at basic prices in 2017-18 is 6.1 per cent, as against 6.6 per cent in 2016-17, the data revealed.
The sectors which registered growth rate of over 7.0 per cent are, public administration, defence and other services, trade, hotels, transport, communication and services related to broadcasting, electricity, gas, water supply and other utility services and financial, real estate and professional services.
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