Ministry of Finance
31-August, 2018 19:53 IST
8.2 percent Growth of GDP in real terms in Q1 of 2018-19 in line with momentum built in the economy & broad -based
The Central Statistics Office today released the estimates of GDP for the first quarter (Q1) of 2018-19. In line with momentum built in the economy, the growth of GDP in real terms in Q1 of 2018-19 is 8.2 per cent, reinforcing the high growth of 7.7 per cent recorded in last quarter of 2017-18. This growth is broad-based and has been driven by 8.4 per cent growth in consumption expenditure and 10.0 per cent growth in fixed investment. The latter development is particularly encouraging as it has come about over an impressive growth of 14.4 per cent in Q4 of 2017-18 and augurs well for future growth.
A look at the GVA in different sector points towards the fact that the growth of agriculture sector in Q1 of 2018-19 was robust at 5.3 per cent on top of 4.5 per cent growth in Q4 of the previous financial year. The growth of manufacturing sector GVA picked up significantly to 13.5 per cent in Q1 of 2018-19, as against negative growth of 1.8 per cent in Q1 of 2017-18. The construction sector GVA growth was 8.7 per cent in Q1 of 2018-19, as compared to 1.8 per cent in Q1 of 2017-18. The services sector continued to do well, building up on growth achieved last year.
All in all, despite some head-winds like higher crude oil prices, uncertainties on trade front due to protectionist tendencies in some countries, the Indian economy has performed well. We can expect the growth for the year as a whole to be very robust and India to be the fastest growing economy in the world.
In his tweet, Shri Subhash Chandra Garg , Secretary Department of Economic Affairs said “ Excellent growth performance in I qrtr. 8.2% overall growth, 13.5% growth in manufacturing and over 10% in capital formation. V shaped recovery of growth in Indian economy is complete now. We should grow at robust and steady state in 18-19 remaining fastest economy in World.”
Dr Hasmukh Adhia , Finance Secretary in his tweet said “. The GDP growth rate of 8.2% for the Q1 (April-June) of fiscal year 2018-19 indicates clearly that several structural reforms introduced such as GST have started giving rich dividends. The growth in manufacturing sector (13.5%) also indicates broad based recovery of demand. It has been a remarkable speed of economic recovery in the last 4 quarters- 6.3%, 7%, 7.7% and now 8.2%”.
***********
31-August, 2018 18:34 IST
Latest GDP Estimates reflect superior acceleration in India’s growth trajectory: Chairman, EAC-PM
The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation released the estimates of Gross Domestic Product (GDP) for the first quarter (April- June) Q1 of 2018-19. As per the CSO, GDP growth rate estimates for April-June 2018 stand at 8.2%. These estimates represent a significant jump from last year’s Q1 growth rate estimates of 5.6%, indicating superior acceleration in India’s growth trajectory. This also validates that the economic fundamentals remain robust. The CSO estimates state that GDP at constant prices was Rs. 33.74 crores for Q1, 2018-19, a rise from of Rs. 31.18 lakh crores and Rs. 29.42 lakh crores for the same period in 2017-18 and 2016-17, respectively.
Welcoming this development, Dr. Bibek Debroy, Chairman of the Economic Advisory Council to Prime Minister (EAC-PM) attributed this positive trend to continued impetus on structural reforms and effective implementation of ongoing policy initiatives. He further stated that the focus on boosting capital spend in infrastructure sector and multiple initiatives to provide universal access to basic goods and services has not only contributed to this growth but has improved its quality as well.
He added that 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.