The Indian economy grew by 7.7 per cent, in January-March 2018, according to data from the Central Statistics Office. During the previous quarter of October-December 2017, the economy grew by 7.2 per cent growth. For the full Financial Year 2017-18, gross domestic product (GPD) has grown by 6.7 per cent. Also Read - India's Stringent Lockdown Has Lasted Longer Than Expected: Fitch
The fourth quarter GDP number is the highest since demonetisation in November 2016. Statistics show the economy grew just by 5.7 per cent in the April-June 2017, after economy got disrupted by demonetisation and implementation of Goods and Services Tax (GST). Also Read - Coronavirus Recession: India's GDP Likely to Contract 5% in FY21: Crisil
The statement by Ministry of Statistics and Programme Implementation said, “GDP (at 2011-12 prices) in the fourth quarter of the financial year 2017-18 registered growth rate of 7.7 per cent as against 5.6 per cent , 6.3 per cent and 7 per cent respectively, in Q1, Q2 and Q3 of 2017-18. Rapid growth in agriculture (4.5 per cent), manufacturing (9.1 per cent) and construction sectors (11.5 per cent) contributed to the overall growth.” Also Read - India's GDP Growth Rate Dips to 1.2% For FY 2020-21, Still Better Than US, UK or Japan: UN Report
With good GDP growth and rising inflation, all eyes will now be on the Reserve Bank of India (RBI) on its policy stance. The RBI’s Monetary Policy Committee (MPC) meet is scheduled on June 4 and 5.
Retail inflation went up to 4.58 per cent in April while the Wholesale Price Index (WPI) based inflation rose to 3.18 per cent mainly on account of rise in fuel prices, as per inflation data released by the government. The data may prompt the Reserve Bank to harden stance at the monetary policy review next month.
According to World bank the Indian economy expected to grow at 7.3 per cent in 2018-19 on the back of rising private consumption and investment. In 2019-20, it has projected the growth rate to be higher at 7.5 per cent. For 2017-2018 it projected the economy to grow at 6.7 per cen.
With inputs from PTI