India's GDP expected to grow at 6.5% in FY18; slower than 7.1% in FY17

Ministry of Statistics & Programme Implementation on Friday said that the growth in GDP during 2017-18 is estimated at 6.5% as compared to growth rate of 7.1% in 2016-17. The reasons for decline in the growth rate could be attributed to demonetisation and the Goods and Services Tax (GST). Many leading economists had predicted such forecast.

The government estimated that gross value added (GVA), which is GDP minus net taxes, will grow at 6.1 percent in 2017-18.

Meanwhiele, the CSO also projected that the manufacturing sector will grow at 4.6 percent in 2017-18, compared to 7.9 percent in 2016-17. The farm sector is set to grow at 2.1 percent against 4.9 percent last year while mining and quarrying will grow at 2.9 percent compared to 1.8 percent last year.

The International Monetary Fund (IMF) expects India's GDP to grow at 6.7 per cent in 2017-18. The RBI estimates the economy to grow at 6.7 per cent in terms of gross value added (GVA), which is GDP minus taxes.

On the other hand, growth in the 'agriculture, forestry and fishing', 'mining and quarrying', 'manufacturing' and 'construction' sectors "is estimated to be 2.1 percent, 2.9 percent, 4.6 percent and 3.6 percent", respectively.

OneIndia News (with agency inputs)