Indian economy likely motored ahead in Q1 but now might coast

India clocks 7.7 per cent GDP growth for Q4FY18

NEW DELHI, May 31 (Reuters) - The Indian economy grew 7.7 percent year-on-year in January-March, its quickest pace in almost two years driven by higher growth in manufacturing, the farm sector and construction.

India is rebounding from an economic slowdown, with growth seen at more than 7 percent, only to find itself ensnared by the volatility engulfing emerging markets.

Interim Finance Minister Piyush Goyal has said that, GDP growth has been increasing continuously every quarter with growth of 7.7 percent in the fourth quarter of 2017-18. Rapid growth in agriculture (4.5 percent), manufacturing (9.1 percent) and construction sectors (11.5 percent) contributed to the overall growth. He said, good growth in the fourth quarter has reflected in GDP numbers.

Around two-thirds of economists in the poll who answered an extra question said growth would continue at roughly the same pace through the fiscal year that began on April 1.

According to World bank the Indian economy expected to grow at 7.3 per cent in 2018-19 on the back of rising private consumption and investment. The key indicators of banking, namely, aggregate bank deposits and bank credits showed a growth of 6.7 per cent and 10.3 per cent, respectively, as on March 31 this year.




The growth rate for 2017-18 was higher than the government's first and second advance estimates - at 6.5% and 6.6% - and in sync with what the International Monetary Fund, the World Bank and the Economic Survey had estimated.

To help businesses tide over multiple taxation, his government launched a nation-wide goods and services tax but a botched implementation of the GST almost scuttled the country's growth prospects in the near term.

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.

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.

The manufacturing sector grew at 9.1 percent compared to 8.5 percent in December 2017 quarter. At the sectoral level, the growth rate of GVA at constant (2011-12) prices for agriculture & allied sectors, industry and services sectors for the year 2017-18 are estimated at 3.4 per cent, 5.5 per cent, and 7.9 per cent respectively. He added that economy is on right track and set for even higher growth in the future.

Related news:

Hot News

isis-killer-beheading-video-story-top Melania Trump makes appearance after 24 days out of sight
Jun 05, 2018 - 05:15
He showed her to a front-row seat across the aisle from Vice President Mike Pence before heading to the microphone. As Monday's event has made clear, however, rumours of the first lady's death have been greatly exaggerated.

isis-killer-beheading-video-story-top Rep. David Cicilline: 'Looks Like' FB CEO Zuckerberg Lied to Congress
Jun 05, 2018 - 05:02
Ime Archibong, Facebook's vice-president of product partnerships, said the company disagreed with the Times report. The potential for additional infractions may only compound Facebook's legal woes.

isis-killer-beheading-video-story-top Masterpiece Cakeshop Wins Supreme Court Decision
Jun 05, 2018 - 05:00
When the justices heard arguments in December, Kennedy was plainly bothered by comments by a commission member. But the Supreme Court's verdict ruled that the Colorado commission had been biased against Mr Phillips.

isis-killer-beheading-video-story-top Zverev comes back from brink to reach French Open last 16
Jun 05, 2018 - 04:36
Despite being the second seed at Roland Garros, the German is yet to make it to the fifth round of a glam slam tournament. It all came down to a winner-take-all fifth set which would require more than 12 games to decide.

isis-killer-beheading-video-story-top Sane out of Germany's World Cup squad
Jun 05, 2018 - 04:35
To Belgium next, and the biggest story from the squad is that Michy Batshuayi has been proclaimed fit to make the final 23. Germany and Belgium have become the latest countries to confirm their 23-man squads for the upcoming World Cup .

isis-killer-beheading-video-story-top England's Dele Alli booed by Nigeria fans at Wembley
Jun 04, 2018 - 20:39
The England camp may be in high spirits after their narrow victory. "It was a great header and we have been working on set-plays". England recalled Gary Cahill to defence and newly-appointed captain Harry Kane to attack against the Nigerians.

isis-killer-beheading-video-story-top Samuel Umtiti dispels Man United rumours with new contract
Jun 04, 2018 - 20:32
Transfer speculation soon arose, and it seemed to have an impact on the centre-back, who regressed as the campaign wore on. Umtiti will formally sign the five-year deal on Monday, before Barca hold a news conference.

isis-killer-beheading-video-story-top What will Apple announce at WWDC? iOS 12, MacBook, iPhone SE2 rumours
Jun 04, 2018 - 20:29
The WSJ claims that the number of bugs has been higher in iOS 11 than any previous version of Apple's mobile operating system. Per Forbes, the focus will be on "stability and bug-catching, rather than any significant changes to the OS".

isis-killer-beheading-video-story-top Apple App Store spending doubles to $42.5B
Jun 04, 2018 - 20:22
In April, Telegram was banned in Russia after the company refused to hand over encryption keys to the Russian government . The burden falls squarely on Apple to justify blocking global updates to Telegram , a hugely popular messaging app.

isis-killer-beheading-video-story-top Vincent Kompany Included in Belgium World Cup Squad, Christian Benteke Left out
Jun 04, 2018 - 20:12
The veteran defender walked off the field early in the second half of Belgium's 0-0 draw with Portugal without waiting to be substituted.

isis-killer-beheading-video-story-top Lingard to start for England in Nigeria friendly
Jun 03, 2018 - 18:30
The fact he feels no real affinity for his father is reflected in his decision to his forename on the back of his shirt. Two first-half goals was all England needed to walk away 2-1 winners over Nigeria in an global friendly on Saturday.

isis-killer-beheading-video-story-top Fallout 76 set to debut at E3
Jun 03, 2018 - 18:28
According to the NoClip trailer, "The History of Bethesda Game Studios " episode will be made available on Tuesday, June 5th. Earlier this week, Bethesda revealed that there is going to be a new game for Fallout .

isis-killer-beheading-video-story-top France gives USA 'a few days' to avoid trade war
Jun 03, 2018 - 18:27
Trump, Trudeau , and several other world leaders are scheduled to meet next week in Canada at the G-7 meeting. However, that is not to say that trade tensions won't intensify further in the coming days and weeks.

Google to scrub USA military deal protested by employees
Jun 03, 2018 - 18:19
Google intends to introduce new "ethical principals" next week involving its use of artificial intelligence , Gizmodo reported.

isis-killer-beheading-video-story-top Financial crisis haunts Italy amid poll turmoil
Jun 03, 2018 - 18:01
Conte's government faces mandatory confidence votes next week in parliament, where the two governing parties have a slim majority. President Sergio Mattarella on Thursday approved a cabinet list presented by Giuseppe Conte .