New Delhi, May 31 (IANS) Showing signs of fully coming out of the shadows of demonetisation and Goods and Services Tax (GST), India’s GDP for the fourth quarter of 2017-18 grew at 7.7 per cent, while for the full financial year 2017-18 it touched 6.7 per cent, official data showed here on Thursday.
The GDP growth during the third quarter of the fiscal was at 7 per cent. “GDP growth has been increasing continuously every quarter with growth of 7.7 per cent in Q4 of 2017-18. Shows that the economy is on the right track & set for even higher growth in the future. This is the Sahi Vikas under leadership of PM Narendra Modi & @ Arun Jaitley,” Finance Minister Piyush Goyal said via Twitter.
“GDP at 2011-12 prices in the fourth quarter (Q4) of financial year 2017-18 registered growth rate of 7.7 per cent as against 5.6 per cent , 6.3 per cent and 7 per cent respectively, in the first three quarters, Q1, Q2 and Q3 of 2017-18, a statement by Ministry of Statistics and Programme Implementation said.
Rapid growth in agriculture (4.5 per cent), manufacturing (9.1 per cent) and construction sectors (11.5 per cent) contributed to the overall growth of the GDP, the statement added.
“Q4 was expected to be good and that is reflected in the numbers. Rise in manufacturing and construction sectors indicated turnaround in the growth story, which will provide further boost to the economy going forward,” Economic Affairs Secretary Subhash Chandra Garg told reporters at a press meet while decoding the GDP numbers.
Asked about recent GDP growth downgrading by Moody’s from 7.5 per cent to 7.3 per cent, he said the government would not revise GDP estimate of FY19, which is at 7.5 per cent.
Chief Economic Adviser Arvind Subramanian, who also present at the press meet, said “the impact of GST is behind us.”
At the sectoral level, the growth rate of gross value added (GVA) in Q4 of 2017-18 for agriculture and allied sectors, industry and services sectors was estimated at 4.5 per cent, 8.8 per cent, and 7.7 per cent, respectively.
GVA includes taxes but excludes subsidies.
The statement said the sectors which registered growth rate of over 7 per cent are ‘public administration, defence and other services’ (10 per cent), ‘ trade, hotels, transport, communication and services related to broadcasting’ (8 per cent) and ‘electricity, gas, water supply & other utility services’ (7.2 per cent).
The growth in the ‘agriculture, forestry and fishing’, ‘mining & quarrying’, ‘manufacturing’, ‘construction’, and ‘financial, real estate and professional services’ is estimated to be 3.4 per cent, 2.9 per cent, 5.7 per cent , 5.7 per cent and 6.6 per cent, respectively, the statement said.
It said: “The Gross National Income (GNI) at 2011-12 prices is now estimated at Rs 128.64 lakh crore during 2017-18, as against the previous year’s estimate of Rs 120.52 lakh crore. In terms of growth rates, the Gross National Income is estimated to have risen by 6.7 per cent during 2017-18, in comparison to the growth rate of 7.1 per cent in 2016-17.”
The per capita income in real terms (at 2011-12 prices) during 2017-18 is estimated to have attained a level of Rs 86,668 as compared to Rs 82,229 for the year 2016-17. The growth rate in per capita income is estimated at 5.4 per cent during 2017-18, as against 5.7 per cent in the previous year.
Reacting to the GDP numbers, secretary general of Assocham, D.S. Rawat, said: “While Indian economy is in cyclical recovery led by both investment and consumption, however, higher oil prices and tighter financial conditions will weigh in on the pace of acceleration.”
“As India imports over two-thirds of its crude requirement, any surge in crude prices has the potential to upset growth projection,” he added.