There was a lot of variation in the GDP growth of India since last few years due to many reasons and last year also the digit for GDP growth decreased due to demonetization issue. But this year’s last quarter, India has surprised everyone and showed a GDP growth of 7.2 percent in the last quarter of October to December 2017.
This is the highest growth recorded since July 2016. And India is now in the top position and recorded as the fastest growing country in the world. Actually, it is more than what everyone expected. Many analysis and survey were done by many economists but one survey analysis by 35 economists calculated the growth of Indian GDP- 6.9 percent, but it is more than that.
During this time China has also recorded a good result but that also less than India’s economic growth. China recorded a GDP growth of 6.8 % in the same quarter- October to December 2017. Last year in April to June quarter, India’s Gross Domestic Product (GDP) growth had fallen to a 3-year low of 5.7 %due to destocking in the run-up to the 1st July launch of the goods and services tax (GST) by Finance Minister Mr. Arun Jaitley. And there was another reason for that, is the effect of demonetization. But later in the next quarter it again received an upward trend and picked up to a revised 6.5%.
According to the forecast, the ultimate revised GDP growth for this financial year, ending in 31st March 2018, will be reached to 6.6 percent from 6.5 percent earlier. During the Oct-Dec quarter many sectors have picked up to a certain level and that is the only reason for the hike in this quarter. The sectors in which the gross valued added (GVA) for manufacturing grew at 8.9 % which was only 6.9 percent in the last quarter. The farming sector’s GVA also increased up to at 4.1 % which 2.7 % only in the last quarter. The construction sector also recorded a rapid growth of 6.8 %, which is higher than 2.8 percent in the last quarter. The financial services also grew at a rate of 6.7 % which was only 6.4 % in the last quarter. The infrastructure outputs also have shown significant growth. It grew by a strong 6.7 % percent in January last year. The Infrastructure output actually comprises total 8 sectors which include- coal, oil, and electricity.
It has been also expected by economists that this year India’s GDP will grow further up to an accelerated point. This year’s 2nd quarter was showed actually a downward trend for growth due to new “GST’ rule but this GST reforms will further help for the GDP growth of our country in the next financial year. it has also been expected and calculated by economists that the ultimate GDP growth of Inda will be 7.6 % for 2018 end and 7.5 % for 2019 end.
