New Delhi: An upswing in manufacturing activity and revival of private investment, supported by strong consumer demand, accelerated India’s GDP growth rate in the first quarter of 2018-19 to 8.2 per cent, official data showed here on Friday, even as industry welcomed the continuous momentum in economic growth over the last two quarters.
According to the Central Statistics Office (CSO), the GDP at 2011-12 prices in the first quarter (Q1) of 2018-19 registered a growth rate of 8.2 per cent, up from 7.7 per cent reported for Q4 of 2017-18 and 5.6 per cent in the corresponding period of the previous fiscal.
“The economic activities which registered growth of over 7 per cent in Q1 of 2018-19 over Q1 of 2017-18 are ‘manufacturing’, ‘electricity, gas, water supply and other utility services’, ‘construction’ and ‘public administration, defence and other services’,” a statement by the Ministry of Statistics and Programme Implementation said.
“The growth in the ‘agriculture, forestry and fishing’, ‘mining and quarrying’, ‘trade, hotels, transport, communication and services related to broadcasting’ and financial, real estate and professional services is estimated to be 5.3 per cent, 0.1 per cent, 6.7 per cent, and 6.5 per cent respectively during this period.”
Besides, the growth rate of gross value added (GVA) in Q1 of 2018-19 stood at 8 per cent from a rise of 5.6 per cent during the corresponding period of the previous fiscal.
GVA includes taxes but excludes subsidies.
Sector-wise, quarterly GVA at basic prices for Q1 2018-19 from “agriculture, forestry and fishing” sector grew by 5.3 per cent compared with growth of 3 per cent in Q1 2017-18.
As per the data, quarterly GVA at basic prices for Q1 2018-19 from “manufacturing” sector grew by 13.5 per cent as compared with (-) 1.8 per cent in Q1 2017-18.
“IIP manufacturing registered growth rate of 5.2 per cent during Q1 of 2018-19 as compared with 1.6 per cent during Q1 of 2017-18,” the statement said.
Commenting on the GDP numbers, Finance Minister Arun Jaitley said the country’s first quarter growth, in otherwise an environment of global turmoil, “represents the potential of New India.”
“Reforms and fiscal prudence are serving us well. India is witnessing an expansion of the neo middle class,” Jaitley tweeted.
Economic Affairs Secretary Subhash Chandra Garg tweeted: “V shaped recovery of growth in Indian economy is complete now. We should grow at robust and steady state in 18-19 remaining fastest economy in the world.”
Finance Secretary Hasmukh Adhia said in a tweet that the 13.5 per cent growth in manufacturing indicated a broad based recovery of demand.
PHD Chamber of Commerce and Industry President Anil Khaitan said in a statement the GDP numbers are a reflection of the effect of the reforms undertaken by the government.
“The growth at 8.2 per cent in Q1 FY2019 after posting a growth of 7.7 per cent in Q4 FY2018 is highly encouraging and the economy is approaching towards its potential growth trajectory,” Khaitan said.