- GDP growth accelerates to 7.2% in October-December quarter
- Economists polled by Reuters had forecast a growth of 6.9%
- Economy expected to grow at 6.6% in 2017-18
China had recorded a growth of 6.8 per cent in the December quarter.
India's GDP or gross domestic product growth had fallen to a three-year low of 5.7 per cent in the April-June quarter due to destocking in the run-up to the July 1 launch of the goods and services tax (GST) and a lingering impact of demonetisation. But in July-September quarter, the economic growth picked up to a revised 6.5 per cent annually.
Meanwhile, for the fiscal year ending March 31, 2018, the government revised its GDP growth forecast higher to 6.6 per cent from 6.5 per cent earlier.
During the December quarter, the gross valued added (GVA) for manufacturing grew at 8.9 per cent higher than 6.9 per cent in the previous quarter. Similarly, the farm sector GVA grew at 4.1 per cent compared to 2.7 per cent in the previous quarter. The construction sector recorded a growth of 6.8 per cent, higher than 2.8 per cent in previous quarter. The services segment including financial services grew at rate of 6.7 per cent up from 6.4 per cent in previous quarter.
Economists widely expect India's GDP growth to accelerate further this year. "Settling down of Goods and Services Tax (GST) reforms will boost growth in next fiscal year," said Anita Gandhi, a director at Arihant Capital Markets. Moody's Investors Service estimates India to grow at 7.6 per cent in calendar year 2018 and 7.5 per cent in 2019, amid signs of economic recovery from impact of demonetisation and GST.
The Indian economy is in a high growth mode and 7.2 per cent expansion in the December quarter marks its return as the fastest growing major economy in the world, Economic Affairs Secretary Subhash Chandra Garg said. He said strong fixed capital growth also indicates that investment is picking up very well and agriculture and services have performed quite well. "Very encouraging and solid 3rd quarter growth numbers from CSO. 7.2 per cent growth marks return of India as the highest growing major economy in the world," Mr Garg said in a tweet. (With Agency Inputs)