India’s GDP touches 8.2% in Q1FY19; July core sector growth at 6.6%

NEW DELHI: India’s economy grew at 8.2 per cent in the April-June quarter of 2018-19 on strong performance of manufacturing and agriculture sectors, increasing its lead over China to remain the world’s fastest growing major economy.nnThe Gross Domestic Product (GDP) at constant prices (2011-12) had grown at 5.6 per cent in the April-June quarter of last fiscal, according to government data released Friday.nnThe size of the GDP in the first quarter of 2018-19 was estimated at Rs 33.74 lakh crore, as against Rs 31.18 lakh crore in Q1 of 2017-18, a growth rate of 8.2 per cent, as per the statement of the Central Statistics Office (CSO).nnThe previous high quarterly GDP growth was recorded in January-March of 2015-16 at 9.3 per cent.nnThe Chinese economy had expanded at the rate of 6.7 per cent in the April-June period this year.nnIndia’s Gross Value Added (GVA) for the quarter under consideration has been estimated at 8 per cent, up from 5.6 per cent in the year-ago period.nnThe quarterly GVA at constant (2011-2012) prices for Q1 of 2018-19 has been estimated at Rs 31.63 lakh crore, as against Rs 29.29 lakh crore in Q1 of 2017-18, showing a growth rate of 8 per cent over the year-ago period.nnThe CSO said that manufacturing activities expand at the rate of 13.5 per cent in the quarter under review. The sector had witnessed a decline of 1.8 per cent in similar period last year.nnFinance Minister Arun Jaitley said in a tweet that the growth represents the potential of new India. “Reforms and fiscal prudence are serving us well. India is witnessing an expansion of the neo middle class.”nNiti Aayog Vice-Chairman Rajiv Kumar in a tweet said: “Excellent news of GDP hitting a 9-quarter high at 8.2 per cent”.nnFinance Secretary Hasmukh Adhia said it has been a remarkable speed of economic recovery in the last four quarters — 6.3 per cent, 7 per cent, 7.7 per cent and now 8.2 per cent.nn”The GDP growth rate of 8.2% for the Q1 (April-June) of fiscal year 2018-19 indicates clearly that several structural reforms introduced such as GST have started giving rich dividends. The growth in manufacturing sector (13.5%) also indicates broad based recovery of demand,” he said in series of tweets.nnThe CSO data further said ‘agriculture, forestry and fishing’ segment of the economy posted a growth of 5.3 per cent as against 3 per cent year-on-year. Growth in the ‘electricity, gas, water supply and other utility serives’ was 7.3 per cent and in construction activities it was 8.7 per cent.nn’Trade, hotels, transport, communication and services related to broadcasting’ and ‘financial, real estate and professional services’ segements posted slower growth in comparison to the year-ago quarter.nnThe growth in mining and quarrying activities too was slower.nnTalking to reporters, Economic Affairs Secretary S C Garg said that the robust performance in the April-June quarter “gives hope” that growth could exceed even estimates of 7.5 per cent for the year as whole.nn”Excellent growth performance in I qrtr. 8.2 per cent overall growth, 13.5 per cent growth in manufacturing and over 10 per cent in capital formation.nn”V shaped recovery of growth in Indian economy is complete now. We should grow at robust and steady state in 18-19 remaining fastest economy in World,” he said.nnIndustry chamber Assocham said the best part about an impressive GDP growth “is that it is being led by employment-intensive manufacturing”.nn”Same is true about the construction which again is job-generating sector and grew by 8.7 per cent,” said Sandeep Jajodia, President of the chamber.nnCommerce Minister Suresh Prabhu said that multiple sectors register growth of over 7 per cent reflecting holistic progress towards ‘New India’ under the leadership of Prime Minister Narendra Modi.nnIn a tweet, Executive Chairman Mahindra Group Anand Mahindra linked the GDP growth number with the Asian Games, saying “…this is like receiving news of a medal… We’ve been sensing a strong recovery of the economy across our various businesses. This data supports that hypothesis.nnNow, to sustain momentum we need more reforms & swift decision making by policy-makers…”nThe Gross Fixed Capital Formation (GFCF) at current prices is estimated at Rs 12.75 lakh crore in first quarter of 2018-19 as against Rs 11.20 lakh crore in similar quarter of 2017-18.nnAt constant (2011-2012) prices, the GFCF is estimated at Rs 10.65 lakh crore in April-June quarter of 2018-19 as against Rs 9.68 lakh crore in similar period of 2017-18.nnGFCF is considered as a barometer of investment activities.nnAnshuman Magazine, Chairman, India and South East Asia, CBRE said a strong GDP growth of 8.2 per cent “builds expectations” and showcases that the economy is recovering much faster than expected from the implementation of policy reforms such as the GST last year.nnPresident of PHDCCI Anil Khaitan said the growth of agriculture, forestry and fishing is reflecting the focus of the government on farm and rural economy during the last few years which would go a long way to strengthen the economy and put it on USD 5 trillion economy by 2025.nnKey Highlightsn1. The growth in GDP is the highest growth in two years; strongest since Q1FY16.n2. The economic activities which registered growth of over 7 per cent in Q1 of 2018-19 over Q1 of 2017-18 are ?manufacturing, ?electricity, gas, water supply & other utility services? ?construction? and ?public administration, defence and other services?.n3. The growth in the ?agriculture, forestry and fishing?, ?mining and quarrying?, ?Trade, hotels, transport, communication and services related to broadcasting? and financial, real estate and professional services is estimated to be 5.3 per cent, 0.1 per cent, 6.7 per cent, and 6.5 per cent respectively during this period.n4. Quarterly GVA at basic prices for Q1 2018-19 from ?agriculture, forestry and fishing? sector grew by 5.3 per cent as compared to growth of 3.0 per cent in Q1 2017-18.n5. Quarterly GVA at basic prices for Q1 2018-19 from ?manufacturing? sector grew by 13.5 per cent as compared to growth of (-) 1.8 per cent in Q1 2017-18.n6. Quarterly GVA at basic prices for Q1 2018-19 from ?Electricity, Gas, water supply and other utility services? sector grew by 7.3 per cent as compared to growth of 7.1 per cent in Q1 2017-18.n7. Quarterly GVA at basic prices for Q1 2018-19 from ?Construction? sector grew by 8.7 per cent as compared to growth of 1.8 per cent in Q1 2017-18.nCore sector datanEight core sectors grew by 6.6 per cent in July pushed by healthy output in coal, refinery products, cement and fertiliser.nThe eight core sector – coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — had registered a growth of 2.9 per cent in July last year.nThe output of coal, refinery products, fertiliser and cement grew by 9.7 per cent, 12.3 per cent, 1.3 per cent and 10.8 per cent respectively in July 2018.nHowever, growth rate in production of crude oil and natural gas recorded negative growth in the month of July.nOn the other hand, steel sector expansion came down to 6 per cent, as against 9.4 per cent in July 2017.nDuring the April-July period of the current fiscal, these 8 sectors grew by 5.8 per cent as against 2.6 per cent in the year-ago period. In June, they grew by 7.6 per cent.