India`s economy grows at robust 8.2 percent in June quarter
- Author: Eleanor Harrison Sep 01, 2018,
Sep 01, 2018, 4:29
Gross domestic product expanded by 8.2% in the three months to June, compared with a 5.5% rise in the same quarter previous year, reinforcing India as one of the fastest growing economies. Even with the updated base year, experts had been estimating the GDP growth to remain in the range of 7.5-7.6 per cent during the June quarter.
"The economic activities which registered growth of over 7 percent 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 Ministry of Statistics and Programme Implementation said. For the first three months of 2018, India reported 7.7 percent annual growth, the fastest in almost two years. This is highest in the last two years, according to the govt data.
India's economy grew at a stunning 8.2 percent in the first quarter of the 2018-19 financial year, official data showed Friday, as it charts a course to overtake Britain as the world's fifth-largest economy.
Manufacturing grew at a nine-quarter high of 13.5 per cent largely owing to a low base effect, while the services sector expanded at a slower pace. "Indian economy is witnessing unprecedented growth in every sector, from manufacturing to agriculture", Bharatiya Janata Party (BJP) president Amit Shah said on Twitter.
The United States is the world´s top economy, followed by China, Japan and Germany.
The Indian government changed the base year for GDP calculation from 2004-05 to 2011-12, by changing the goods and services in the basket to make it more current, in 2015.
He said, "If you calculate the core GVA, which is basically the private sector, that has actually surged to 8.1 percent as against 7.2 percent. Q1 growth rate is based on the lowest base (5.6) in the last 8 quarters", he said.
"We expect growth to be 7.5 per cent for the full year. Growth in manufacturing (13.5 per cent) also indicates broad-based recovery of demand".
"Some concerns linger on the sustainability of growth of around 8 per cent in the remaining quarters of FY2019, given the base effect, risks posed by higher crude oil prices, interest costs and a weakening rupee, as well as fiscal constraints", said Aditi Nayar, principal economist at ICRA.
"This is probably the best GDP trend we have seen in the first half of the fiscal year", said Shashank Mendiratta, India economist at ANZ Bank.
Another measure of growth, this one in gross-value added (GVA) terms, showed the Indian economy growing at 8% compared to 5.6% previous year.