INDIAN ECONOMY EXPANDS 7.7%

Govt keeps FY19 GDP growth estimate unchanged at 7.5%

NEW DELHI: Indian economy grew 7.7 per cent in January-march 2018, the biggest expansion in seven quarters, on account of robust performance in manufacturing, construction and service sectors as well as good farm output, government data showed on Thursday.

However, the economic growth slows to 6.7 per cent in 2017-18 compared to 7.1 per cent in 2016-17.

“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 on Thursday.

The previous high GDP growth of 8.1 per cent was recorded in April-june quarter of 2016-17. The GDP growth was 6.1 per cent in JanuaryMarch quarter in 2016-17.

Buoyed by India retaining its fastest growing economy tag, the government on Thursday said it is keeping its forecast of GDP growth of 7.5 per cent for fiscal year 2018-19 unchanged. Finance Minister Piyush Goyal said the 7.7 per cent GDP growth in the fourth quarter of 2017-18 showed the economy was on right track for higher growth in the future.

The growth surpassed China’s 6.8 per cent expansion in the January-march period.

“GDP growth has been increasing continuously every quarter with growth of 7.7% in Q4 of 2017-18. Shows that the economy is on the right track & set for even higher growth in the future. This is the #Sahivikas under leadership of PM,” Goyal tweeted. Speaking to reporters soon after GDP data for Q4 and 2017-18 was released, Economic Affairs Secretary Subhash Chandra Garg said the government is not cutting its FY19 growth forecast of 7.5 per cent. In 2017-18, the economy had grown by 6.7 per cent. He said he did not see any co-relation between oil prices and GDP growth and the fiscal deficit would remain as per the targets.

The economic growth slows to 6.7% in 2017-18 compared to 7.1% in 2016-17