New Delhi, January 6: After demonetization, the economy of India has seen a bit of dip this year but the NITI Aayog on Friday said that the growth of GDP would become more robust in the year 2018-19.
Notably, the Vice Chairman of NITI Aayog, Dr. Rajiv Kumar said, "The second half GDP growth in 2017-18 has risen to 7% which has brought the annual growth rate to 6.5%.” He further pointed out that economic activity has been picking up over the last three quarters and can be expected to strengthen in the coming period with the manufacturing PMI now reading at a five year high of 54%, and FMCG demand picking up briskly. Hence the GDP growth will become more robust in 2018-19.
The Vice Chairman of NITI Aayog also noted that the estimates assume significance in the wake of the fact that the higher second-half growth came despite a weaning of public sector expenditures which had peaked in 2016-17 on account of the implementation of the recommendations of the 7th Pay Commission.
Earlier in the day, the Central Statistics Office (CSO) released the data which said the growth in GDP during 2017-18 was estimated at 6.5%, as compared to the growth rate of 7.1% in 2016-17. “Real GDP at constant (2011-12) prices in the year 2017-18 is likely to attain a level of Rs 129.85 lakh crore, as against the Provisional Estimate of GDP for the year 2016-17 of Rs 121.90 lakh crore,” the data said.
The data released by CSO also revealed that the Gross Value Added (GVA) at basic constant prices (2011-12) is anticipated to increase from Rs 111.85 lakh crore in 2016-17 to Rs 118.71 lakh crore in 2017-18. “Anticipated growth of real GVA at basic prices in 2017-18 is 6.1%, as against 6.6% in 2016-17,” the data said.
Public administration, defence and other services, trade, hotels, transport, communication and services related to broadcasting, electricity, gas, water supply and other utility services and financial, real estate and professional services are the sectors that registered a growth rate of over 7.0% last year.
While the Wholesale Price Index (WPI) of food articles, manufactured products, electricity and all commodities, has risen by 2.0%, 2.6 %, 0.4 % and 2.8 % respectively during April-November, 2017-18. Meanwhile, the Consumer Price Index (CPI) has shown a rise of 3.0 per cent during April-November, 2017-18.