GDP recovers to 6.3 percent in second quarter

New Delhi: India’s GDP (Gross Domestic Product) growth has recovered to 6.3 percent in the second quarter from a three-year low of 5.7 percent in first quarter, said the Ministry of Statistics and Programme Implementation (MOSPI) on Thursday.

Addressing a press conference here, Chief Statistician of India and Secretary, MOSPI Dr. T.C.A. Anant said that after almost five quarters of decline, the GDP marks a reversal, which is very encouraging.

“The GDP at constant (2011-12) prices in Q2 of 2017-18 is estimated at Rs 31.66 lakh crore, as against Rs 29.79 lakh crore in Q2 of 2016-17, showing a growth rate of 6.3 percent. Quarterly GVA (Gross Value Added) at basic price at constant (2011-12) prices for Q2 of 2017-18 is estimated at Rs 29.18 lakh crore, as against Rs 27.51 lakh crore in Q2 of 2016-17, showing a growth rate of 6.1 percent over the corresponding quarter of previous year,” he said.

The GVA is the measure of the value of goods and services produced in an area, industry or sector of an economy, in economics.

The GDP is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period.

“The economic activities which registered growth of over 6.0 percent in Q2 of 2017-18 over Q2 of 2016-17 are manufacturing, electricity, gas, water supply and other utility services and trade, hotels, transport and communication and services related to broadcasting,” said Dr. Anant.

“The growth in the agriculture, forestry and fishing, mining and quarrying, construction, financial, insurance, real estate and professional services and Public administration, defence & other services is estimated to be 1.7 percent, 5.5 percent, 2.6 per cent, 5.7 percent and 6.0 percent respectively, during this period,” he added.

Dr. Anant further said that construction continues to be low.

“It is indicator driven and based on steel and cement, and those numbers have not show high growth,” said Dr. Anant.

The second quarter estimates are based on agricultural production during Kharif season of 2017-18 obtained from the Ministry of Agriculture, Department of Agriculture & Cooperation (DAC), abridged financial results of listed companies from BSE/NSE, Index of Industrial Production (IIP), monthly accounts of Union Government Expenditure maintained by Controller General of Accounts (CGA) and of State Government expenditure maintained by Comptroller and Auditor General of India (CAG).

Performance of key indicators of sectors like transport including railways, road, air and water transport etc., communication, banking and insurance during the period July-September 2017 have been taken into account while compiling the estimates. (ANI)