India's GDP Grew 8.2% in the Last Quarter

India's GDP Grew 8.2% in the Last Quarter

India's GDP Grew 8.2% in the Last Quarter

India's economic growth surged to a more than two-year high of 8.2 percent in the three months through June from a year earlier, powered by a strong performance of manufacturing and consumer spending.

The GDP growth rate in the last quarter was 7.7 per cent while that in the first quarter of the previous financial year (2017-18) stood at 5.59 per cent.

The Wholesale Price Index (WPI), in respect of the groups - food articles, minerals, manufactured products, electricity and all commodities has risen by 1.5 per cent, 15.8 per cent, 3.8 per cent, 5.6 per cent and 4.7 per cent respectively during first quarter of 2018-19.

Meanwhile, data released by the Ministry of Commerce and Industry showed that India's core sector registered a growth rate of 6.6% in July.

Another measure of growth, this one in gross-value added (GVA) terms, showed the Indian economy growing at 8% compared to 5.6% past year.

The spike in crude rate and a sharp fall in the value of the rupee have impacted India's current account deficit and could affect the fiscal situation too if the government tries to stabilise oil prices through direct or indirect subsidies.

FICCI President Rashesh Shah said the double-digit growth in manufacturing comes on back of a low base but does reflect the positive momentum already seen in some of the key lead indicators of economic activity. That was much stronger than economists' prediction of 7.6% and significantly up from the 7.7% expansion in the preceding quarter. The Fiscal Responsibility and Budget Management (FRBM) committee headed by former revenue secretary N K Singh had suggested that the Centre and states' combined debt-to-GDP be brought down to 60 per cent by 2023. In the first quarter of the year, the economy had grown by 7.7 per cent. "Therefore, this needs to be watched in the next few quarters", said Madan Sabnavis, chief economist at Care Ratings.

However, service sector figures dipped to 7.3% from 9.5 % as well as the government expenditure which had supported the growth last year, receded to 9.9% from 13.5 % same quarter the previous year.

The GDP growth indicates that households are buying more. "Indian economy is witnessing unprecedented growth in every sector, from manufacturing to agriculture". India's GDP stood at Dollars 2.597 trillion (Rs 178 lakh crore) in 2017 in current prices in market exchange rates, ahead of France whose GDP stood at USD 2.582 trillion (Rs 177 lakh crore) in 2017.

Related news