GDP surges in third quarter
- GDP growth in the third quarter of financial year 2017-18 was 7.2%, the fastest in the year so far.
- The government also marginally increased its estimate for the full year’s growth to 6.6% from its earlier estimate of 6.5%.
Growth in GDP
- Growth in GDP was at 6.5% in the second quarter of this financial year.
- Growth in the gross value added (GVA) in the third quarter stood at 6.7%, up from the 6.2% seen in the second quarter and the 5.6% in the first quarter of this financial year.
- In the third quarter, the manufacturing sector exhibited a strong recovery, growing at 8.1%, following up on a 6.9% growth in the second quarter.
- The agriculture sector also saw relatively robust growth in the third quarter, growing at 4.1%, up from 2.7% in the first and second quarters.
- The GDP trends are consistent with the robust growth of the manufacturing Purchasing Manager’s Index (PMI), Index of Industrial Production (IIP) and consumer demand.
- The fast recovery in the economic indicators like IIP, PMI and consumer demand reflects a positive economic sentiment and that India is on the right path to become one of the fastest major economy in the world surpassing China.
- Gross fixed capital formation (GFCF), a measure of overall investment activity in the economy, grew at a robust 12% in the third quarter, up from the 6.92% growth seen in the previous quarter.
Key points to remember