India grows at 7.2% in Oct-Dec; GDP pegged at 6.6% in 2017-18

RSTV Bureau
Representative picture of factory workers

Representative picture of factory workers

In a strong indication of recovering Indian economy, the GDP grew at 7.2% in October-December quarter this fiscal. The growth has now pegged India’s to 6.6% in 2017-18, notch higher than the earlier of 6.5%. It is, however, lower compared to 7.1% in the last fiscal.

The growth for the second quarter (July-September) has been revised upwards to 6.5 per cent, from 6.3 per cent estimated earlier by the CSO. The previous high was recorded at 7.5 per cent in the July-September quarter of 2016-17.

The CSO said that the real GDP or Gross Domestic Product (GDP) at constant (2011-12) prices in 2017-18 is likely to be Rs 130.04 lakh crore, as against the first revised estimate for 2016-17 of Rs 121.96 lakh crore, released on January 31.

The gross valued added (GVA) for manufacturing in the quarter under review grew at 8.9% higher than 6.9% in the previous quarter. Similarly, the farm sector GVA grew at 4.1% compared to 2.7% in the previous quarter. The construction sector recorded a growth of 6.8%, higher than 2.8% in previous quarter.

Meanwhile, giving thumbs to India’s growth story, eight infrastructure sectors grew a faster pace of 6.7% in January as against 3.4% in the year-ago month as petroleum refinery and cement output zoomed while steel power and coal production improved.

The eight core sectors — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — had grew by 4.2% in December and 7.4% in November this financial year. Petroleum refinery production spurted 11% in January against a flat output in the year-ago month. Cement output jumped 20.7% in the month against 13.3% contraction in the year-ago period.

Electricity generation growth also fast paced to 8.2% in January against 5.2% in January 2017.

Coal sector output improved by 3% and steel production by 3.7% in January 2018. Crude oil production however dropped 3.2%, fertilisers by 1.6% and natural gas by 1% in the month under review.

However, the growth in the eight core sectors during April-January this fiscal slowed to 4.3% as against 5.1% in the same period last fiscal. The growth in key sectors will have implications for the Index of Industrial Production (IIP) as these eight segments account for about 41% of the total factory output.

(With inputs from PTI)