Robust performance by manufacturing, construction and service sectors and good farm output pushed the India's January-March 2018 GDP growth to a seven-quarter high of 7.7 per cent, helping it retain the fastest growing major economy tag, government data showed today.
India's economic expansion at 7.7 per cent was significantly higher than China's 6.8 per cent in the January-March period.
However on yearly basis, the Indian economy grew at a four-year low of 6.7 per cent in 2017-18, down from 7.1 per cent in the previous fiscal. The previous low was recorded in 2013-14 at 6.4 per cent.
"GDP at 2011-12 prices in the fourth quarter of 2017-18 registered growth rate of 7.7 per cent as against 5.6 per cent, 6.3 per cent and 7 per cent, respectively, in the first three quarters of 2017-18. Rapid growth in agriculture (4.5 per cent), manufacturing (9.1 per cent) and construction (11.5 per cent) contributed to the overall growth," the Central Statistics Office (CSO) said in its national accounts data released today.
The previous high GDP growth of 8.1 per cent was recorded in the April-June quarter of 2016-17. The GDP growth was 6.1 per cent in January-March 2016-17.
Commenting on data, Finance Secretary Hasmukh Adhia said, "The constant increasing trend of quarterly GDP numbers in the four quarters of 2017-18 at 5.6 per cent, 6.3 per cent, 7 per cent and 7.7 per cent indicates that the structural measures of reforms undertaken by government is now bringing rich dividends in the form of higher GDP growth rate."
The decline in the annual GDP growth has been mainly due to dip in manufacturing, agriculture and mining activities. However, construction and financial services showed some improvements.
The gross value addition (GVA) for the January-March quarter expanded at 7.6 per cent from from 6 per cent a year ago, data showed.
Manufacturing sector GVA grew at 9.1 per cent in fourth quarter, up from 6.1 per cent year ago. Similarly, construction sector GVA rose 11.5 per cent in the fourth quarter as compared to 3.9 per cent a year ago.
GVA growth of trade, hotels, transport and communication and services related to broadcasting grew at 6.8 per cent in the fourth quarter as compared to 5.5 per cent a year ago. Similarly, financial, real estate and professional services GVA grew at a higher rate of 5 per cent in the quarter as compared to 1 per cent a year ago.
Mining and quarrying did not perform well in January-March as GVA of the segment grew at 2.7 per cent in the fourth quarter, down from 18.8 per cent in the year-ago period.
Though the farm GVA output growth was well above satisfactory mark of 4 per cent at 4.5 per cent in fourth quarter, it was lower than 7.1 per cent a year ago.
Electricity, gas, water supply and other utility services GVA grew at 7.7 per cent in the fourth quarter as compared to 8.1 per cent a year earlier.
Real GVA (at basic constant 2011-12 prices for 2017-18) is now estimated at Rs 119.76 lakh crore, showing a growth rate of 6.5 per cent over first revised estimates of GVA for 2016-17 of Rs 112.48 lakh crore. The GVA growth was 7.1 per cent in 2016-17.
A barometer of investment, the gross fixed capital formation (GFCF) at current prices is estimated at Rs 47.79 lakh crore in 2017-18 as against Rs 43.52 lakh crore in 2016-17.
At constant (2011-12) prices, the GFCF is estimated at Rs 40.88 lakh crore in 2017-18 as against Rs 37.98 lakh crore in 2016-17.
In terms of GDP, the rates of GFCF at current and constant (2011-12) prices during 2017-18 are estimated at 28.5 per cent and 31.4 per cent, respectively, as against the corresponding rates of 28.5 per cent and 31.1 per cent, respectively, in 2016-17.
Commenting on data, CII Director General Chandrajit Banerjee said, "The rebound in growth reinforces CII's own assessment that the economy is back on track and is set for a strong recovery after the period of disruptions sparked by demonetisation and GST implementation. The GDP numbers for 2017-18 marginally overshoots the advance estimates of GDP released earlier this year.
Assocham Secretary General D S Rawat said, "While Indian economy is in cyclical recovery led by both investment and consumption, however, higher oil prices and tighter financial conditions will weigh on the pace of acceleration.
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