India is one of the fastest growing economies in the world but in the recent past, the results were not very supportive of this fact courtesy of 2017-2018 Q1 results, where GDP growth stood at 5.59 percent. Later, it picked up and in Q4 it stood at 7.7, started pretty slowly but later picked up. The fiscal year 2017- 2018 is over and India entered into the new fiscal year which is 2018-2019.
Q1 results of 2018-2019 fiscal year are out and India’s GDP stood at 8.2 percent, which showcase the strong start of the year, from the year 2016 this is the first time this kind of start country has received. The markets are looking positive and expecting more investment. The best part of the growth, the rural sector has performed pretty well in the Q1.
The election year is about to start and the positive projection in relation to GDP will in a way help the government to bolster their image in public. This will also increase the confidence in the government as in last fiscal year, in Q4 the GDP stood at 7.7 and in this year Q1 stood at 8.2 says it all.
India is posting the quarter by quarter increase in GDP growth. The other country, China, with which India is always compared has posted 6.7 percent growth rate in its second quarter. China follows the concept of the calendar year over fiscal year (followed by India).
Highlights:
There are many sectors, who have registered the growth rate of over 7 percent like manufacturing, electricity, gas, water supply & other utility services, construction, public administration, defense etc.
The growth in agriculture, forestry, fishing, mining and quarrying is 5.3 percent.
The growth in trade, hotels, transport, communication and services related to broadcasting posted the growth rate of 0.1 percent.
Finance and real estate posted the growth rate of 6.7 percent.
Professional services posted the growth rate of 6.5 percent.
Coal, refinery products, cement and fertilizer posted the growth of 6.6 percent.
Recently, this year itself India’s $2.6 trillion economy surpassed Frances economy and became the sixth largest economy, as per World Bank data.
As per Q1 results, the estimated GDP is for the year 2018-19 is Rs 44.33 lakh crore, as against Rs 38.97 lakh crore in Q1 of the year 2017-18. However, the Q1 results are very good but economists are not looking very optimistic about the growth and considering that slowdown will be encountered in the upcoming quarters of the fiscal year.
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