The data released by the Central Statistics Office showed that the country's economy has bounced back to its form to hit a record 8 percent growth for the first time in the last 15 quarters due to the strong consumer demand which has led to the recovery in the private investment.
The Gross Domestic Product (GDP) for the first quarter of 2018-2019 is at 8.2 percent as against 5.6 percent in the first quarter of 2017-2018. In the previous quarter of 2017-2018 (Q4 2018) the GDP growth was recorded at 7.7 percent.
In terms of Gross Value Added (GVA), the country's economy grew at 8 percent as against 5.6 percent during last year. GVA growth is a preferred measure of economic growth as it negates the impact of indirect taxes and subsidies.
The government of India has changed the base year for GDP calculation from 2004-2005 to 2011-2012, by changing the goods and services in the basket to make it more current, in 2015.
Overall India's economy has finally recovered from the twin shocks of demonetization and GST and has started to move on the progress path towards a better future.
Sector Wise Growth in First Quarter 2018-2019
• Agriculture, Forestry and Fishing Sector grew at 5.3 percent vs 3 percent last year.
• Manufacturing Sector grew at 13.5 percent vs -1.8 percent last year.
• Mining and Quarrying Sector grew at 0.1 percent vs 1.7 percent last year.
• Construction Sector grew at 8.7 percent vs 1.8 percent last year.
• Financial, Real Estate and Professional Sector grew at 6.5 percent vs 8.4 percent last year.
• Trade, Hotels, Communication, Transport and Service Sector grew at 6.7 percent.
GDP at current prices in the first quarter of 2018-2019 is estimated at Rs 44.33 lakh crore, as against Rs 38.97 lakh crore in the first quarter of 2017-2018, a staggering growth of 13.8 percent.
The improved strength in the urban consumption demand and a likely strong rural demand due to good monsoon has pushed in some private investment. The investment side remained positive for the fifth time in a row.
• The Gross fixed capital formation witnessed growth at 10 percent in the first quarter of 2018-2019 as against 14.9 percent growth in the previous quarter of 2017-2018.
• The government's expenditure edged by 7.5 percent as compared to 16.8 percent during the last quarter.
• The private consumption expenditure grew at 8.5 percent after posting 6.7 percent growth in the last quarter.