India's GDP grew slightly better than expected at 7.7% for the quarter ending March 31, 2018, raising the prospect of an interest rate hike by the country's central bank later this year.
In its release, the Central Statistics Office (CSO) reported a growth rate 7.7 percent in Gross Domestic Product (GDP) for the fourth quarter (January-March) of 2017-18 on Thursday. The growth makes the highest GDP since demonitisation.
The rate is higher against 5.6 percent, 6.3 percent and 7.0 percent respectively, in the first three quarters, Q1, Q2 and Q3 of 2017-18. Rapid growth in agriculture (4.5 percent), manufacturing (9.1 percent) and construction sectors (11.5 percent) contributed to the overall growth.
Last year, it reported 6.1 percent growth in GDP for the fourth quarter of 2016-17. For the whole year 2017-18, the growth rate declined to 6.7 percent compared to 7.1 percent last year.
The official statement said, "Real GDP or GDP at constant (2011-12) prices for the year 2017-18 is now estimated at Rs 130.11 lakh crore showing a growth rate of 6.7 percent over First Revised Estimates of GDP for the year 2016-17 of Rs 121.96 lakh crore, released on 31st January, 2018."
Gross Value Added
The quarterly gross value added stood at 7.6 percent for the January-March 2018 period. In terms of annual growth, GVA was at 6.5 percent. GVA calculates the growth without the impact from indirect taxes and subsidies.
At the sectoral level, the growth rate of GVA at constant (2011-12) prices in Q4 of 2017-18 for agriculture and allied sectors, industry and services sectors are estimated at 4.5 percent, 8.8 percent, and 7.7 percent respectively.
The gross national income at current prices is estimated at Rs 165.87 lakh crore during 2017-18, as compared to Rs 150.77 lakh crore during 2016-17, showing a rise of 10 percent.
Per-Capita Net National Income
The per capita income at current prices during 2017-18 is estimated to have attained a level of Rs 1,12,835 as compared to the estimates for the year 2016-17 of Rs 1,03,870 showing a rise of 8.6 percent.
- The farm sector's growth rose to 4.5 percent in the March-ended quarter compared to 3.1 percent during October-December 2017.
- The manufacturing sector grew at 9.1 percent compared to 8.5 percent in December 2017 quarter.
- The construction sector's growth rose to 11.5 percent compared with 6.6 percent in the previous quarter.
- The financing, real estate and insurance sector's growth lower at 5 percent against 6.9 percent in December 2017.
- Mining sector experiences a growth of 2.7 percent as against 1.4 percent in third quarter.
- The government spending-linked public administration segment's growth rose to 13.3 percent from 7.7 percent in December quarter.