This year Indian economy is set to achieve the fastest growth rate in five years. According to the Central Statistics Office (CSO), the country’s economy will grow at the rate of 7.6% in the financial year 2015-16, the fastest since 2010-11 when it clocked the growth rate of 8.9%.
The improvement in the performance of GDP is attributed to better than expected performance of manufacturing sector as it is set to clock near double digit growth and revival of agriculture sector which witnessed negative growth last fiscal.
As per the latest data released on Monday evening, the GDP growth rate is estimated to be 7.3% in the third quarter (October-December) this year.
CSO has also revised upwards the GDP growth estimates for April-June and July-September quarters to 7.6 per cent and 7.7 per cent from earlier calculation of 7 per cent and 7.4 per cent, respectively.
At 7.6 per cent, India would be growing at the fastest pace in the last five years. The previous high was recorded at 8.9 per cent in 2010-11.
Commenting on the GDP data, Economic Affairs Secretary Shaktikanta Das said, “The direction of the numbers is very positive. The policy and reform measure the government has undertaken in last one and a half years are beginning to show results.
The real Gross Value Addition, a new concept introduced by CSO to measure economic growth, is projected at 7.3 per cent in this fiscal against 7.1 per cent in 2014-15.
The manufacturing sector is estimated to grow at 9.5 per cent in 2015-16, up from 5.5 per cent a year ago.
Similarly, in case of agriculture sector, the growth has been projected at 1.1 per cent as against decline of 0.2 per cent a year ago.
However, all is not well with Indian economy as the growth of mining and quarrying sector, electricity and power supply and other services is likely to witness deceleration during the current financial year.