India's GDP growth surges over 8 percent, boost for Modi before election

Moody’s Investor Service recently said the government was likely to miss its fiscal deficit target in 2018-19 due to higher than budgeted oil prices and rising interest rate scenario

The Indian economy grew at 15-quarter high of 8.2 percent in the April-June quarter of current fiscal on good show by manufacturing and farm sectors, according to the government data released today.

Union Finance Secretary Hasmukh Adhia said: "The GDP growth rate of 8.2 per cent for the first quarter of 2018-19 indicates several structural reforms such as the GST have started giving rich dividends". India is the world's fastest-growing economy and expanding more quickly than China, which reported 6.7% economic growth in the second quarter.

The manufacturing and construction sectors were among those that grew at more than 7% during the quarter, the government said. This means GVA also grew at 8 per cent. "Possibly the buoyancy in agriculture is because of the allied activities". This is the fourth consecutive quarter in which GDP growth has maintained an upward trajectory.

He said, "If you calculate the core GVA, which is basically the private sector, that has actually surged to 8.1 percent as against 7.2 percent".

Last year, India's GDP growth was at 5.6 per cent in the same quarter.

Union minister Piyush Goyal, who had held held the finance portfolio in absence of Arun Jaitley- who has resumed his duties - termed the growth rate "phenomenal".

P Chidambaram, however, expressed happiness at the quickened rate of growth recorded in the first quarter of current fiscal.

In a dig at the preceding UPA government, he said the economy was in shambles when Modi took over but an unfazed NDA, the entire Cabinet, "single-mindedly" focussed on putting India back on track. While this isn't the official so-called back series, it was immediately pounced upon by the Congress, which lead the United Progressive Alliance government at the time this growth was achieved. While impressive growth performance in agriculture and construction is a welcome trend given the high labour intensity of these sectors, services recording a lower than average growth is an important development, Sen added.

"Growth will be stronger in the first half compared to the second as the favourable base effect will begin to wear off after the second quarter", noted Joshi.

From the expenditure side, the composition of GDP remained broadly the same during Q1 2019 and Q1 2018, with private consumption accounting for 55% of the total GDP.

She added, "But (GDP growth rate) still this suggests that the turnaround is there and that there is an intrinsic resilience in the economy because despite zero macro-economic stimulus and external stresses, we are doing well". This shows that inflationary pressures might be stronger than what is captured by the benchmark index, Sen added.

Related news:

Hot News

isis-killer-beheading-video-story-top United States cuts almost $300 million in aid for Palestinian refugees
Sep 01, 2018 - 04:24
In a statement, the State Department said that the USA was no longer willing to fund a disproportionate share of the UNWRA costs. However, the agency is still suffering its worst funding crisis in its 68-year history, according to United Nations officials.

isis-killer-beheading-video-story-top Facebook Watch On-Demand Video Platform Rolling Out Worldwide
Aug 31, 2018 - 03:01
It features a feed of videos, tailored to each user's interests, including sports, news clips, and live videos from celebrities. The service will also be available on Samsung Smart TV, Apple TV, Amazon Fire TV, Android TV, Oculus TV and Xbox One.

isis-killer-beheading-video-story-top Gov. Brown Signs Bail Reform Bill
Aug 31, 2018 - 02:44
California becomes the second U.S. state, after Hawaii, to call for carbon-free electricity by 2045. It quickly cleared both the Assembly and the Senate and was on Brown's desk the following day.

isis-killer-beheading-video-story-top Florida's Ron DeSantis Doubles Down on 'Monkey This Up' Comment
Aug 31, 2018 - 01:35
Lois Frankel, a West Palm Beach Democrat. "To characterize it as anything else is absurd", his spokesman Stephen Lawson said. But he acknowledged in a recent interview that it would be "big" to be Florida's first black governor.

isis-killer-beheading-video-story-top Apple to reveal next generation iPhone on September 12
Aug 31, 2018 - 00:44
But now the wait is over as Apple has officially sent out the invites for its most important event of the year. The 5.8-inch iPhone X will also see a successor, which will be built more like an S-series update .

isis-killer-beheading-video-story-top Venus eyes Serena clash as US Open sweats in sexism storm
Aug 31, 2018 - 00:28
Venus, ranked 16th, advanced to Friday's third round matchup by defeating Camila Giorgi 6-4, 7-5 earlier on Wednesday. It was a win that will pit the Williams sisters against one another in the next round, as Serena will play Venus.

isis-killer-beheading-video-story-top Times Square Abuzz As Hundreds Of Bees Swarm Hot Dog Cart
Aug 30, 2018 - 03:06
The officer could not specify where exactly the bees would be taken, but did assert that they would be 'definitely in a hive'. A police officer wearing a mesh-hooded protective suit collects the bees using a vacuum cleaner-like device.

isis-killer-beheading-video-story-top Days After McCain's Death, Arizonans Head To Polls In State Primary
Aug 30, 2018 - 02:59
Flake did have good words for McSally, however, telling reporters just prior to the election that he hopes McSally takes the seat. Leading off the race is Congresswoman Martha McSally , who clinched the GOP nomination after winning over 50-percent of voters.

isis-killer-beheading-video-story-top Yaya Toure agrees Olympiakos return despite London club links
Aug 30, 2018 - 02:56
It is unclear where the 35-year-old multiple Premier League victor is close to signing. "It's not West Ham , 100%", he added. Yaya Toure's agent has posted a cryptic message on Twitter claiming the Ivory Coast global has passed a medical in London .

isis-killer-beheading-video-story-top Man Utd: Jose Mourinho has club's backing despite defeat by Tottenham
Aug 30, 2018 - 02:52
The Special One suffered his heaviest ever home defeat as a manager last night as Tottenham ran out 3-0 winners at Old Trafford . Likely fed up with rumors and recent results, Mourinho demanded respect despite his club's 1-0-2 record to begin the season.

isis-killer-beheading-video-story-top Donald Trump Confirms: Don McGahn Leaving the White House in the Fall
Aug 30, 2018 - 02:28
Sessions eventually did recuse himself, giving his deputy, Rod Rosenstein, the ultimate authority to appoint a special counsel. The Times reported that McGahn has spent 30 hours speaking with Mueller's team and offered insight that only he could.

isis-killer-beheading-video-story-top French Tennis Player Handed Code Violation For Fixing Her Backwards Top
Aug 30, 2018 - 02:00
Per CBS News , only the Women's Tennis Association has a rule dictating where their players can and cannot take off their shirts. Meanwhile, several male players were forced to retire early from their matches this week due to the scorching heat.

isis-killer-beheading-video-story-top Trump nixed statement praising McCain
Aug 30, 2018 - 01:20
Naval Academy Cemetery and Senator McCain will be laid to rest next to his Naval Academy classmate and lifelong friend, Adm. McCain hit back after a tape of Trump making vile comments about women - the "grab 'em by the p***y" scandal - emerged.

isis-killer-beheading-video-story-top Xbox All Access Offers Console And Game Pass For A Subscription
Aug 28, 2018 - 04:53
For the Xbox One X, you only save about $20 over the course of two years, but you also don't have to pay that all at once. Update: An official page for Xbox All Access is now available on the Microsoft Store, giving us some more information.

isis-killer-beheading-video-story-top Maurizio Sarri reveals how long his Chelsea FC plan will take
Aug 28, 2018 - 04:08
That means for all of their possession, Chelsea weren't able to conjure a single genuinely great chance against Newcastle . Benitez was not happy about the decision, but Alonso said: "I think I touched the ball and got in front of the opponent".