India's GDP at 7.2% in Q3FY18; second advance estimate stands at 6.6% for FY18
GDP at constant (2011-12) prices in Q3 of 2017-18 is estimated at Rs 32.50 lakh crore, as against Rs 30.32 lakh crore in Q3 of 2016-17, showing a growth rate of 7.2%.
India's Gross Domestic Product (GDP) came in at 7.2% in third quarter October - December 2017 (Q3FY18) - higher compared to 6.3% in Q2FY18 and 5.7%. India's GDP has reached to one-year high, as the last time, the economy stood near 7% mark, was in the corresponding period of the previous year.
The Central Statistics Offices (CSO) stated that GDP at constant (2011-12) prices in Q3 of 2017-18 is estimated at Rs 32.50 lakh crore, as against Rs 30.32 lakh crore in Q3 of 2016-17, showing a growth rate of 7.2%.
Quarterly estimates of GDP for the third quarter October-December (Q3), 2017-18 both at constant (2011-12) and current prices along with the corresponding quarterly estimates of expenditure components of GDP are also being released.
GDP growth rates for Q1 and Q2 of 2017-18 at constant prices are 5.7% and 6.5% respectively, as per MOSPI.
GDP is derived by adding taxes on products net of subsidies on products to GVA at basic prices.
GVA at basic prices at constant (2011-12) prices in Q3 of 2017-18 is estimated at Rs 30.11 lakh crore, as against Rs 28.21 lakh crore in Q3 of 2016-17, showing a growth rate of 6.7%.
Growth rates in various sectors are as follows: ‘agriculture, forestry and fishing’ (4.1%), ‘mining and quarrying’ (-0.1%), ‘manufacturing’ (8.1%), ‘electricity, gas, water supply and other utility services’ (6.1%) ‘construction’ (6.8%), ‘Trade, hotels, transport, communication and services related to broadcasting' (9.0%), 'financial, real estate and professional services' (6.7%), and ‘Public administration, defence and Other Services' (7.2%).
Estimated growth in the index of mining, manufacturing and electricity are 0.8%, 7.1% and 3.8% respectively, in Q3 of 2017-18.
The private final consumption expenditure (PFCE) and Gross fixed capital formation (GFCF) were estimated at Rs 19.19 lakh crore and Rs 10.52 lakh crore, having growth rate of 59.1% and 32.4% respectively in Q3FY18.
PFCE and GFCF stood at 59.9% and 31% in the corresponding period of the previous year.
At the same time, the government’s final consumption expenditure (GFCE) in Q3FY18 was estimated at Rs 3.23 lakh crore as against Rs 3.04 lakh crore in Q3FY17, having 9.9% in Q3FY18 versus 10% in Q3FY17.
While presenting the data of GDP for Q3FY18, the CSO also released second advance estimate numbers for the entire fiscal year FY18.
The CSO says, "Real GDP or Gross Domestic Product (GDP) at constant (2011-12) prices in the year 2017-18 is likely to attain a level of Rs 130.04 lakh crore, as against the first revised estimate of GDP for the year 2016-17 of Rs 121.96 lakh crore, released on 31st January 2018."
Thus, the growth in GDP during 2017-18 is estimated at 6.6% as compared to the growth rate of 7.1% in 2016-17.
While real GVA, i.e, GVA at basic constant prices (2011-12) is anticipated to increase from Rs 112.48 lakh crore in 2016-17 to Rs 119.64 lakh crore in 2017-18.
Anticipated growth of real GVA at basic prices in 2017-18 is 6.4% as against 7.1% in 2016-17.
According to CSO, the sectors which are likely to register growth rate of over 7% - are ‘public administration, defence and other services’, ‘trade, hotels, transport, communication and services related to broadcasting’, ‘electricity, gas, water supply and other utility services’ and 'financial, real estate and professional services’.
The growth in ‘agriculture, forestry and fishing’, ‘mining and quarrying’, ‘manufacturing’, and ‘construction’ is estimated to be 3%, 3%, 5.1% and 4.3% respectively.