Indian economy gets Agriculture, Manufacturing push ahead of general elections to grow at 7.2% in FY19: What CSO data says
The latest Central Statistics Office (CSO) data on Indian economy has brought cheers for the Narendra Modi government, which is facing odds on several fronts in the wake of recent debacle in assembly elections. According to the CSO estimate, Indian economy is expected to grow at 7.2 per cent in 2018-19 against 6.7 per cent in the previous fiscal mainly due to improvement in the performance of agriculture and manufacturing sectors. The key highlights of the CSO data are:
According to the CSO data, the expansion in activities in 'agriculture, forestry and fishing' is likely to increase to 3.8 per cent in the current fiscal from 3.4 per cent in the preceding year.
The growth of the manufacturing sector is expected to accelerate to 8.3 per cent this fiscal, up from 5.7 per cent in 2017-18. The mining and quarrying sector growth rate is estimated to decline from 2.9 per cent in 2017-18 to 0.8 per cent in current fiscal. Image source: Reuters
Trade, hotels, transport, communication and services related to broadcasting will too witness deceleration to 6.9 per cent from 8 per cent in the previous fiscal. The growth rate of public administration, defence and other services will also dip to 8.9 per cent from 10 per cent last fiscal.
Electricity, gas, water supply & other utility services growth is estimated at 9.4 per cent in 2018-19, up from 7.2 per cent in the last fiscal. Similarly, the construction sector is expected to grow at 8.9 per cent from 5.7 per cent previous fiscal. Financial, real estate & professional services' growth will be a tad higher at 6.8 per cent this fiscal against 6.6 per cent in 2017-18. Image source: Pixabay
The per capita net national income during 2018-19 will be Rs 1,25,397, showing a rise of 11.1 per cent as compared to Rs 1,12,835 during 2017-18 with the growth rate of 8.6 per cent, according to the CSO estimates.
Gross Fixed Capital Formation (GFCF), a barometer of investment, at current prices is estimated at Rs 55.58 lakh crore in 2018-19 as against Rs 47.79 lakh crore in 2017-18. At Constant (2011-12) Prices, the GFCF is estimated at Rs 45.86 lakh crore in 2018-19 as against Rs 40.88 lakh crore in 2017-18. Image source: Reuters
In terms of GDP, the rates of the GFCF at Current and Constant (2011-12) prices during 2018-19 are estimated at 29.5 per cent and 32.9 per cent, respectively, as against the corresponding rates of 28.5 per cent and 31.4 per cent, respectively in 2017-18. The discrepancies in the GDP estimates for current fiscal has been pegged at Rs 1,49,331 crore as against Rs 2,23,504 crore in 2017-18. Image source: Reuters
The Government Final Consumption Expenditure (GFCE) at Current Prices is estimated at Rs 21.70 lakh crore in 2018-19 as against Rs 19.08 lakh crore in 2017-18. At Constant (2011-12) Prices, the GFCE is estimated at Rs 15.28 lakh crore in 2018-19 as against Rs 14.0 lakh crore in 2017- 18. Image source: Reuters
Describing the 2018-19 GDP growth projection 'very healthy', Economic Affairs Secretary Subhash Chandra Garg tweeted, "Very healthy advance GDP growth numbers for 2018-19. GDP grows by 7.2% compared to 6.7% in 2017-18. India remains the fastest growing major economy globally. At current prices, GDP grows by 12.3% rising to 188.41 lakh crore. Per capita GDP at current prices rises to Rs 1,41,447." Image source: PTI
Crisil Chief Economist Dharmakirti Joshi told PTI, "Improvement in private consumption demand and a stable election outcome will play an important role in that. Private consumption was a sore spot with its growth slipping anew to 6.4 per cent from 6.6 per cent as farm incomes and rural wage growth remained weak." Image source: PTI