4 defining points that show GDP growth is on a roll, 1 that doesn't
The Gross Domestic Product (GDP) growth for the March quarter at 7.7 per cent remained highest since demonetisation. For the full fiscal year 2017-18, the growth came in at 6.7 per cent against the expectations of 6.6 per cent. Rating agnecy Crisil expects the momentum to continue and lift growth to 7.5 per cent in fiscal year 2018-19. The broad takeaway is that the economy is recovering well post implementation of the Goods and Services Tax (GST) last year, given steps from the government to resolve glitches. Notably, India remains the fastest growing economy in the world, ahead of China. Key defining points about Indian economy:
The economy continued its growth momentum as real GDP growth spurted to an eight-quarter high of 7.7 per cent in Q4, up from 7 per cent (revised downward from 7.2% earlier) in Q3. This suggests that demonetisation impact is fading and GST related glitches are getting resolved. (Photo: Reuters)
The improvement in growth appears to be broad-based, with both consumption and investment showing improvement. (Photo: PTI)
On the supply side, growth in gross value added (GVA) - a firmer measure of economic activity - improved 100 basis points (bps) to 7.6 per cent in Q4 from 6.6 per cent in Q3. (Photo: Pixabay)
Agriculture (Q4 growth at 4.5 per cent vs 3.1 per cent in Q3) and industrial (8.8 per cent vs 7.1 per cent) sector displayed improvement. (Photo: PTI)
However, there is one headwind that the Indian economy is battling - Services sector growth remained stagnant at 7.7 per cent. (Photo: Reuters)