Beating all previous estimates, India’s gross domestic product (GDP), for the first quarter ended June 30, grew at 8.2 percent. For the first three months of 2018, India reported 7.7 percent annual growth, the fastest in nearly two years.
A Reuters poll, HDFC Bank’s research and a CARE Ratings report are expected 7.6 percent GDP growth for the first quarter of current fiscal.
In its report, the RBI said economic growth was expected to accelerate to 7.4 percent in the current fiscal year that began in April, from 6.7 percent the previous one, despite risks posed by higher oil prices and global trade tensions.
Private sector lender HDFC Bank, in its research report, said that there are some genuine signs of revival in the economy as the major growth is likely to come from the manufacturing and the service sector. The report said that agricultural growth may also support the GDP growth.
The GDP growth is driven by the manufacturing and the agricultural sector for its 8.2% growth. It’s a strong surge and it comes on the back of 7.7% & 7% growth in Q4 & Q3 respectively in 2017-18.
Agriculture, forestry and fishing
The Agriculture, forestry and fishing sector has grown at the rate of 5.3% in Q1 of 2018-19 as compared to growth of 3.1% in 2017-18.
The manufacturing sector has grown at a rate of 13.5% in this quarter due to the steady growth of the corporate sector. The corporate sector which contributes a significant part of this sector has grown at more than 17% in real terms.
The Construction sector has witnessed a growth of 8.7% due to the good performance of the steel and cement industry. The production of cement increased by 14.2% while steel consumption went up by 8.4%/
In the transport sector, there has been an increase in the sales of commercial vehicles by 51% in this quarter while the sales of passenger cars went up by 18% over the last quarter.
The Gross Fixed Capital Formation registered an increase of 13.8% in Q1 of 2018-19 as compared to 2.8% last year.
This growth is also stronger than forecasts of most agencies and institutions.
The growth is reflective of robust core growth and infrastructure growth. The renewed momentum of growth in agriculture and manufacturing is a great sign is reflective of more opportunities for the common man.