India GDP growth hits highest in Modi-era; FY19 begins with a bang at 8.2% in Q1

1-Sept-2018

The last year of the Narendra Modi’s 5-year term has begun with a bang as the GDP for the first quarter of the financial year 2018-19 has hit an 8.2% growth rate, beating all expectations. India had missed the 8% mark earlier in the fourth quarter of FY16 when it recorded 7.9%.

“GDP at constant (2011-12) prices in Q1 of 2018-19 is estimated at Rs 33.74 lakh crore, as against Rs 31.18 lakh crore in Q1 of 2017-18, showing a growth rate of 8.2 percent,” Central Statistics Office (CSO) said. The Gross Value Addition (GVA) growth has been 8% in the April-June quarter of FY19.

The 8.2% GDP growth rate has come a big shot in the arm of the government as it has been criticised severely in the previous financial year when the GDP had dropped to a three-year low of 5.7% majorly due to the disruptions caused by the implementation of the Goods and Services Tax (GST). But since, the GDP growth has maintained an unstoppable upward growth trajectory.

As per CSO data, four sectors recorded over 7% growth rate in the first quarter of the financial year 2018-19. These sectors are manufacturing; electricity, gas, water supply & other utility services; construction; public administration, defence and other services. Manufacturing sector which had a negative growth last year bounced back with an impressive 13.5% growth rate.

Agriculture sectors too showed signs of recovery by clocking a 5% growth rate as compared to 3% same quarter last year, CSO data showed.

Source: FINANCIAL EXPRESS