GDP surges in third quarter

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



MAR 01

GDP surges in third quarter

Introduction

  • 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.

GFCF

  • 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

  • GDP
  • Gross Value Added (GVA)
  • Purchasing Managers’ Index
  • Index of Industrial Production
  • Gross Fixed Capital Formation