New Delhi, Aug 31: The Indian Economy posted a robust growth of 8.2 % in the first quarter of fiscal 2018-19. The data released by the Central Statistics Office today said 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.
This is the highest GDP growth since the second quarter (Q2) of the financial year 2014-15 when the GDP grew at 8.4 per cent.
The top sectors that significantly contributed to this 8.2% growth are manufacturing, electricity, gas, water supply & other utility services, construction' and public administration, defence and other services'. These sectors grew at over 7 % during April-June 2018 period.
The manufacturing sector grew at 13.5 % compared to -1.8 % last year while the construction sector grew at 8.7 percent compared to 1.8 percent last year. The mining sector grew at 0.1 percent compared to 1.7 percent last year while the agriculture sector grew at 5.3 percent compared to 3 percent last year. The financial services sector, however, grew at 6.5 percent compared to 8.4 percent last year.
The growth in the last two years had been lowest in the first quarter (Q1) of fiscal 2017-18 when it had dipped to 5.6 per cent. Since then there has been a steady upward trend - Q1 (2017-18) - 5.6%, Q2 (2017-18) - 6.3%, Q3 (2017-18) - 7.0% and Q4 (2017-18) - 7.7 %.
The GDP growth during the last quarter of 2016-17 (Q4) was 6.1% and for the subsequent quarter it was 5.6%. This, according to economists, was due to the impact of demonetisation. Since hitting 5.6% low, the progress has been a steady one and it can be said that the economy is out of the demonetisation blues.
With this, India continues to remain world's fastest growing major economy. The world's second largest economy, China, reported a 6.7 per cent growth for June quarter compared with 6.8 per cent in March quarter.
However despite the strong Q1 numbers, there is apprehension about the economy slowing down in the coming times.
"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," tweeted former finance minister P Chidambaram.
2016-17 17-18 18-19— P. Chidambaram (@PChidambaram_IN) August 31, 2018
8.1 5.6 8.2
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.