Bibek Debroy, Chairman of the Economic Advisory Council said growth would pick up more in the upcoming quarters driven by the government commitment to implement structural reforms and aided by higher growth in the industrial and services sector and central government spending.
Debroy said, "GDP trends are consistent with the robust growth of the manufacturing Purchasing Manager's Index (PMI), Index of Industrial Production (IIP) and consumer demand. The IIP (Q-o-Q % change) grew at 4.38 percent in December 2017 as compared to 0.50 percent in September 2017."
According to government data released today, India regained the status of the world's fastest-growing major economy in the October-December quarter, driven by higher government spending and a pick-up in manufacturing and services. Gross domestic product or GDP grew 7.2 per cent in in the October-December quarter from a year earlier,
This is the highest quarterly growth recorded since July-September quarter of 2016-17. The growth rate is higher than what the Street had expected. A Reuters poll of more than 35 economists estimated the economy to grow 6.9 per cent in the October-December quarter.
(With agency inputs)