AMN
The Indian economy grew at five-quarter high of seven point two per cent in the October-December period reflecting overall recovery due to good show by agriculture, manufacturing, construction and certain services.
The economy is expected to grow at 6.6 per cent in the current fiscal ending March 31, as per the second advanced estimates of the Central Statistics Office (CSO), compared to 7.1 per cent in 2016-17.
The earlier estimate was 6.5 per cent.
The growth for the second quarter (July-September) has been revised upwards to 6.5 per cent, from 6.3 per cent estimated earlier by the CSO.
The previous high was recorded at 7.5 per cent in the July-September quarter of 2016-17.
It said, the growth in GDP during 2017-18 is estimated at 6.6 per cent as compared to the growth rate of 7.1 percent in 2016-17.
Meanwhile, for the fiscal year ending March 31, 2018, the government revised its GDP growth forecast higher to 6.6 per cent from 6.5 per cent earlier.
During the December quarter, the gross valued added (GVA) for manufacturing grew at 8.9 per cent higher than 6.9 per cent in the previous quarter. Similarly, the farm sector GVA grew at 4.1 per cent compared to 2.7 per cent in the previous quarter. The construction sector recorded a growth of 6.8 per cent, higher than 2.8 per cent in previous quarter. The services segment including financial services grew at rate of 6.7 per cent up from 6.4 per cent in previous quarter.
Separately, infrastructure output grew by a strong 6.7 per cent in January from a year ago, government data showed today. The growth in output compares with an upwardly revised 4.2 per cent year-on-year growth in December. Infrastructure output, which comprises eight sectors such as coal, crude oil and electricity, accounts for nearly 40 per cent of industrial output.
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COMMENTSEconomists widely expect India’s GDP growth to accelerate further this year. “Settling down of Goods and Services Tax (GST) reforms will boost growth in next fiscal year,” said Anita Gandhi, a director at Arihant Capital Markets. Moody’s Investors Service estimates India to grow at 7.6 per cent in calendar year 2018 and 7.5 per cent in 2019, amid signs of economic recovery from impact of demonetisation and GST.
The International Monetary Fund projects India’s GDP to grow at 7.4 per cent in 2018 as against China’s 6.8 per cent. The IMF’s update, released last month, projects a 7.8 per cent growth rate for India in 2019