India’s economy grew at its fastest in seven quarters in the January-March period, bolstered by strong performance in construction, manufacturing and public services, pointing to a persistent revival trend and bringing cheer to the government ahead of next year’s general election.
The full FY18 growth estimate was revised upward to 6.7 per cent from 6.6 per cent in the second advance estimate released in February. This is in line with the 6.75 per cent growth forecast by the Economic Survey and down from 7.1 per cent in FY17 with the slowdown being attributed to the lingering effect of demonetisation and the rollout of the goods and services tax (GST) in July last year.
Gross domestic product rose a better-than-expected 7.7 per cent in the fourth quarter, retaining India’s ranking as the world’s fastest-growing major economy, outpacing China by nearly a percentage point.
The economy grew at the highest rate since September quarter of FY17, ahead of the demonetisation drive that began November 2016. An ET poll of economists had pegged fourth-quarter growth at 7.1-7.5 per cent . October-December FY18 growth was revised down to 7 per cent from 7.2 per cen ..
China’s economy grew 6.8 per cent in the quarter ended March 31.
Finance secretary Hasmukh Adhia tweeted that the government’s economic policies were bearing fruit.
“The constant increasing trend of quarterly GDP numbers in the four quarters of 2017-18 at 5.6 per cent , 6.3 per cent , 7 per cent and 7.7 per cent indicates that the structural measures of reforms undertaken by government is now bringing rich dividends in the form of higher GDP growth rate,” he said on Twitter.
