Wednesday, 10 January 2018

GDP estimates & comparison

By Shivam Saklani

The Central Statistics Office has recently estimated FY 18 growth at 6.5%. The expected GVA and GDP growth will be 6.5 and 6.7 percent respectively. If this estimate comes true, this would be worst annual growth for India in past 4 years. In FY 17, India’s GDP expanded 7.1 percent, emerging as the fastest growing economy globally. The CSO estimate shows that agriculture, forestry, and fishing grew at 2.1 percent in FY 18 compared to 4.9 percent expansion in FY 17. At 4.6 percent, manufacturing sector’s growth is much lower than 7.9 percent in FY 17.

While mining and quarrying has made a significant jump from 1.8 percent in FY 17 to 2.9 percent in FY 18. The Construction activity is seen growing at 3.6 percent against 1.7 percent, recorded previous fiscal. Services have also displayed a huge progress 0.6 percent i.e. from 7.7 percent in FY 17 to 8.3 in FY 18.

Given the estimated weaker growth in agriculture sector Finance Minister Arum Jaitely is likely to focus more on agriculture and rural economy in his last full budget this February.


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