India Becomes World’s Fastest Growing GDP in Quarter 3

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Gross Domestic Product (GDP)

In October to December time, the GDP of India has grown at 7.2% in 2017. Moreover, it may expand 6.6% in 2017-18, officials said on Wednesday. Apart from consumption and investment, it makes so. India’s GDP now poised and moving at a faster pace. It made a drift of recovery from demonetization and goods and services tax.

However, the real inflation adjusted the growth of GDP from 6.5% in the earlier quarter. This is helping India in regaining the status that’s lost. It’s really surprising India’s GDP had outpaced China as it has grown 6.8% in October-December 2017.

The high-frequency indicators like industrial output data and corporate income have seen broadly according to the estimates. The government’s prediction on India’s GDP in January paused fixed at 6.5% for October-December quarter. However, coming quarter would grow the GDP at 7%, estimation goes.

The Central Statistics Office advance at secondly reported gave an actual data of three quarters. This can give a perfect scenario on the economy’s health.

Also, CSO estimated the Gross Value Added (GVA) – the difference between GDP and net taxes in October-December has risen 6.7% from 6.2% in the earlier quarter. The same quarter in 2016-17 recorded GVA of 6.9%.

Sectors Contribution in India’s GDP Growth

Coming to the manufacturing sector, it has grown 8.1% in Q3 of 2017-18. The full year it may grow still 5.1%.

In June, most of the companies have cut down the back production and carried old stock to July. No one has the constant opinion on prices after GST. In fact, the manufacturing sector has recovered from the GST and a jump in primary capital goods output and industry production has risen exponentially.

The expenditure revenue of the government also raced to 24% from 12% last year. The service sector improvements have given a hand to grow the non-agricultural sector. From 2017-18, the agricultural sector covered at 4.1% and projected to grow 3% in 2017-18.

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The construction sector recorded 6.8% in October-December. “Improvement broad-based, with a pickup in most production/investment demand indicators. Under GVA, agricultural and non-agricultural activities have both picked pace. Besides base effects, better construction and agriculture sectoral performance bode well for employment creation prospects. Looking ahead, the likelihood of higher rural incomes (on higher MSPs) and pre-election spending is likely to be supportive of 2018-19 numbers,” said Radhika Rao, India Economist, DBS Bank.