The Indian economy grew at five-quarter high of 7.2% in the October-December period reflecting overall recovery due to good show by agriculture, manufacturing, construction and certain services.
The economy is expected to grow at 6.6% in the current fiscal ending March 31, as per the second advanced estimates of the Central Statistics Office (CSO), compared to 7.1% in 2016-17.
The earlier estimate was 6.5%.
The growth for the second quarter (July-September) has been revised upwards to 6.5%, from 6.3% estimated earlier by the CSO.
The previous high was recorded at 7.5% in the July-September quarter of 2016-17.
The CSO said that the real GDP or Gross Domestic Product (GDP) at constant (2011-12) prices in 2017-18 is likely to be Rs 130.04 lakh crore, as against the first revised estimate for 2016-17 of Rs 121.96 lakh crore, released on January 31.
The growth in GDP during 2017-18 is estimated at 6.6% as compared to the growth rate of 7.1 percent in 2016-17, it added.
The gross valued added (GVA) for manufacturing in the quarter under review grew at 8.9% higher than 6.9% in the previous quarter.
Similarly, the farm sector GVA grew at 4.1% compared to 2.7% in the previous quarter. The construction sector recorded a growth of 6.8%, higher than 2.8% in previous quarter.
The services segment including financial services grew at rate of 6.7% up from 6.4% in previous quarter.
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"All three sectors - agriculture, industry and services - have accelerated in the third quarter. "Importantly GST disruption is seen waning as borne out by manufacturing sector growth at 8.1% in October-December vs 6.2% in July-September. Construction, government services and agriculture have led the growth in the December quarter. Broadly, the numbers are in line with our estimation for full year GDP at 6.7%. We have added the risk of a rate hike sometime between June to August 2018 following the recent monetary policy minutes, hinging on the inflation trajectory, and the GDP numbers reinstate our views," said Shubhada Rao, chief economist, YES Bank.
"Settling down of GST reforms will boost growth in FY 19. RBI has to balance between growth and inflation.
The recently released minutes of the MPC's last policy meeting showed growing concerns of embers over continued inflationary risks arising from high food and crude prices. High bad loans and reported fraud in the banking system have already happened. Right measures to eradicate such incidences in future and finding NPA resolution is the path ahead. There are concerns of rising fiscal deficit and possibility of interest rates rising further. While all other things seem to be in place, paucity of rainfall can be major risk in next one year. Creating jobs for the younger generation will lead to annual growth rate above 8%," said Anita Gandhi, whole time director, Arihant Capital Markets.
The economy is expected to grow at 6.6% in the current fiscal ending March 31, as per the second advanced estimates of the Central Statistics Office (CSO), compared to 7.1% in 2016-17.
The earlier estimate was 6.5%.
The growth for the second quarter (July-September) has been revised upwards to 6.5%, from 6.3% estimated earlier by the CSO.
The previous high was recorded at 7.5% in the July-September quarter of 2016-17.
The CSO said that the real GDP or Gross Domestic Product (GDP) at constant (2011-12) prices in 2017-18 is likely to be Rs 130.04 lakh crore, as against the first revised estimate for 2016-17 of Rs 121.96 lakh crore, released on January 31.
The growth in GDP during 2017-18 is estimated at 6.6% as compared to the growth rate of 7.1 percent in 2016-17, it added.
The gross valued added (GVA) for manufacturing in the quarter under review grew at 8.9% higher than 6.9% in the previous quarter.
Similarly, the farm sector GVA grew at 4.1% compared to 2.7% in the previous quarter. The construction sector recorded a growth of 6.8%, higher than 2.8% in previous quarter.
The services segment including financial services grew at rate of 6.7% up from 6.4% in previous quarter.
ALSO READ
FY18 GVA growth likely to be 6.7%, gradual recovery on cards: Nomura
GDP growth hits 3-year low of 5.7%, slowest under Modi govt
HDFC Bank pegs GDP growth at 7.3% in FY19 on rural push, consumption surge
FY17 GDP growth retained at 7.1% and GVA growth revised sharply to 7.1%
Cash ban, GST to cool GDP growth to 4-year low at 6.7%, shows poll
"All three sectors - agriculture, industry and services - have accelerated in the third quarter. "Importantly GST disruption is seen waning as borne out by manufacturing sector growth at 8.1% in October-December vs 6.2% in July-September. Construction, government services and agriculture have led the growth in the December quarter. Broadly, the numbers are in line with our estimation for full year GDP at 6.7%. We have added the risk of a rate hike sometime between June to August 2018 following the recent monetary policy minutes, hinging on the inflation trajectory, and the GDP numbers reinstate our views," said Shubhada Rao, chief economist, YES Bank.
"Settling down of GST reforms will boost growth in FY 19. RBI has to balance between growth and inflation.
The recently released minutes of the MPC's last policy meeting showed growing concerns of embers over continued inflationary risks arising from high food and crude prices. High bad loans and reported fraud in the banking system have already happened. Right measures to eradicate such incidences in future and finding NPA resolution is the path ahead. There are concerns of rising fiscal deficit and possibility of interest rates rising further. While all other things seem to be in place, paucity of rainfall can be major risk in next one year. Creating jobs for the younger generation will lead to annual growth rate above 8%," said Anita Gandhi, whole time director, Arihant Capital Markets.
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