'First Advance Estimates of National Income 2018-19' evaluate GDP growth to reach 7.2 per cent
Source :NewsBharati Date :08-Jan-2019
Mumbai, January 8: “The growth in GDP during 2018-19 is estimated at 7.2 per cent as compared to the growth rate of 6.7 per cent in 2017-18”, said the Ministry of Statistics and Programme Implementation releasing the ‘First Advance Estimates of National Income for 2018-19’.
"Real GDP or GDP at Constant Prices (2011-12) in the year 2018-19 is likely to attain a level of ₹139.52 lakh crore, as against the 'Provisional Estimate of GDP for the year 2017-18' of ₹130.11 lakh crore, released on 31st May 2018," it added further.
Economic Affairs Secretary Subhash Chandra Garg described the 7.2 per cent GDP growth projection as very healthy. In a series of tweets, Garg said, “India continued to remain the fastest growing economy in the world. At the current prices, GDP grows by 12.3 per cent rising to 188. 41 lakh rore”. It is in the month of October that Garg had urged the need of country’s GDP to exceed the estimate projected by RBI, it being 7.4%.
“Especially gratifying, impressive and promising is the growth in gross fixed capital formation (GFCF). 12.2% real growth in 2018-19 compared to 7.6% in in 2017-18 heralds excellent pick up in investment activity. GFCF as a ratio to GDP has risen to 32.9% from 31.4% in 2017-18”, he added further.
Meanwhile, economist Sunil Kumar Sinha, the research director for Public Finance said, "As expected, GDP growth recovered sharply in FY19 from 6.7% in FY18. However, the GDP growth in FY19 would have been even better but for the global headwinds caused by an abrupt rise in crude oil prices, strengthening of USD and rising global trade friction."
According to the report, the growth in the trade, hotels, transport, communication and services related to road casting is estimated to be 6.9 per cent, while financial, real estate and professional services are seen growing at 6.8 per cent. Agriculture, forestry and fishing sector, and mining and quarrying sector are likely to growth at 3.8 per cent and 0.8 per cent, respectively.