Chidambaram expresses scepticism over GDP growth prospects in coming year
New Delhi, Aug 31: Congress leader and former finance minister P Chidambaram expressed scepticism over India's GDP growth prospects, saying it would "not be so favourable" in third and fourth quarters, despite the GDP growing at 8.2 per cent in the current fiscal's first quarter.
He said the country's growth rate might decline in the third and fourth quarters and be the same as that reported in the last fiscal.
"Going forward, the base effect will not be so favourable. And when we reach Q3 and Q4, the rate of growth may decline and the annual growth rate may be more or less like last year's," he said on Twitter. Chidambaram, however, expressed happiness at the quickened rate of growth recorded in the first quarter of current fiscal.
"Happy that the rate of growth has quickened, but look at the table once again. Q1 growth rate is based on the lowest base (5.6) in the last 8 quarters," he tweeted. He also gave a tabulated data showing that the GDP was 8.1 per cent in the first quarter of 2016-17, which declined to 7.6 per cent in the second quarter, declining further to 6.8 per cent and 6.1 per cent in the third and fourth quarter of 2016-17. However in 2017-18, the data showed that the GDP growth was 5.6 per cent and 6.3 per cent in the first two quarters, that rose to 7 and 7.7 per cent in the third and fourth quarter of 2017-18.
The Indian economy grew at 15-quarter high of 8.2 per cent in the April-June quarter of current fiscal on good show by manufacturing and farm sectors, according to the government data released today. The growth cemented India's position as the fastest growing major economy, clocking higher expansion rate than China's 6.7 per cent in the same quarter.
The gross domestic product (GDP) at constant (2011-12) prices in the first quarter of 2018-19 is estimated at Rs 33.74 lakh crore, as against Rs 31.18 lakh crore in Q1 of 2017-18, showing a growth rate of 8.2 per cent, a Central Statistics Office statement said.