India's GDP growth for the first quarter of the financial year 2018-19 at 8.2% is fastest among the world's major economies, and is at a two-year high. The latest quarterly GDP growth has beaten most estimates.
The last year of the Narendra Modi’s 5-year term has begun with a bang as the GDP for the first quarter of the financial year 2018-19 has hit a two-year high of 8.2% growth rate, beating all expectations. India had missed the 8% mark earlier in the fourth quarter of FY16 when it recorded 7.9%.
“GDP at constant (2011-12) prices in Q1 of 2018-19 is estimated at Rs 33.74 lakh crore, as against Rs 31.18 lakh crore in Q1 of 2017-18, showing a growth rate of 8.2 percent,” Central Statistics Office (CSO) said. The Gross Value Addition (GVA) growth has been 8% in the April-June quarter of FY19.
The 8.2% GDP growth rate, fastest among the world’s major economies, has come a big shot in the arm of the government as it was criticised severely in the previous financial year when the GDP growth had dropped to a three-year low of 5.7% majorly due to the disruptions caused by the implementation of the Goods and Services Tax (GST). But since, the GDP growth has maintained an unstoppable upward growth trajectory.
As per CSO data, four sectors recorded over 7% growth rate in the first quarter of the financial year 2018-19. These sectors are manufacturing; electricity, gas, water supply & other utility services; construction; public administration, defence and other services.
Manufacturing sector which had a negative growth last year bounced back with an impressive 13.5% growth rate. Agriculture sectors too showed signs of recovery by clocking a 5% growth rate as compared to 3% same quarter last year, CSO data showed.
A Reuters poll had forecast the fiscal first quarter GDP growth at 7.6%. The actual growth at 8.2% is the highest in the last nine quarters, after 9.3% growth recorded in the January-March quarter of the year 2016 (Q4 FY2015-16).
(This story was updated to include details of GDP growth in Q4 FY2015-16, the highest in Modi’s Prime Ministerial rule so far.)