New Delhi, Feb 28 (IANS) Its double cheer for Indian government ahead of Holi on Wednesday as the GDP and Eight Core Industries (ECI) data showed signs of economic recovery but fiscal deficit data played the spoilsport at 113.7 per cent of the full year’s target.
A pick-up in the country’s manufacturing sector accelerated India’s third quarter GDP growth of 2017-18 to 7.2 per cent from a rise of 5.2 per cent achieved in the second quarter, official data showed.
According to the second advance estimates of national income at constant (2011-12)and current prices for the financial year 2017-18, the GDP growth rate of the entire fiscal 2017-18 was revised upward to 6.6 per cent.
“The Real GDP at constant (2011-12) prices in the year 2017-18 is likely to attain a level of Rs 130.04 lakh crore, as against the first revised estimate of GDP for the year 2016-17 of Rs 121.96 lakh crore, released on January 31, 2018,” the second advance estimates showed.
“The growth in GDP during 2017-18 is estimated at 6.6 percent as compared to the growth rate of 7.1 percent in 2016-17.”
The data released by the Ministry of Statistics and Programme Implementation showed that the growth in country’s quarterly GDP came on the back of a healthy pick-up in manufacturing activity which grew at 8.1 per cent.
Prime Minister’s Economic Advisory Council Chairman Bibek Debroy said the economy was on the right track and the current expansion in the growth rate suggests that the reforms initiated by the government had started showing results.
The third quarter GDP growth, helped by manufacturing, construction and agriculture paint a pretty good macro picture for Indian economy, industry body ASSOCHAM said.
“The 7.2 per cent growth in GDP for Q3 also highlights an improvement in investment, manufacturing and construction thereby giving hope for a good pace of economic growth in the next fiscal, as the stage is now set in FY2017-18,” said D.S. Rawat, Secretary General, Assocham.
CII Director-General, Chandrajit Banerjee, said the significant improvement in GDP growth was “noteworthy and strengthens the perception that the Indian economy is at threshold of a sustained rebound in growth.”
Also the pace of India’s eight major industries’ output accelerated in January to 6.7 per cent from an increase of 4 per cent in December 2017 and 3.4 per cent in the corresponding month of the previous fiscal, official data revealed.
“The combined Index of ECI stands at 133.1 in January, 2018, which was 6.7 per cent higher as compared to the index of January, 2017,” the Ministry of Commerce & Industry said.
“Its cumulative growth during April to January, 2017-18 was 4.3 per cent.”
The ECI index represents the output of major sectors like coal, steel, cement and electricity and carries 40.27 per cent weightage of the Index of Industrial Production which is the macro-gauge for India’s factory output.
However, India’s fiscal deficit for April-January period of 2017-18 stood at 113.7 per cent of the full year’s target, official data showed.
The data furnished by the Comptroller General of Accounts showed that during April-January, the fiscal deficit stood at Rs 6.77 lakh crore, which is 113.7 per cent of the full year’s target.
The capital expenditure during the period stood at Rs 2.64 lakh crore. The revenue deficit during the period was at 4.8 lakh crore, revealed the data.
While the Nikkei India Manufacturing Purchasing Managers’ Index (PMI), a composite indicator of manufacturing performance, fell to 52.1 from 52.4 in January 2018, though it remain in positive territory. Everything above 50 shows a positive indication.
Business conditions of India’s manufacturing sector improved in February, but at a slower pace from January.