India's GDP or gross domestic product growth accelerated to 7.7 per cent in the March quarter - the fastest pace of growth in seven quarters.
Growth for the 2017-2018 financial year as a whole came in at 6.7%, according to provisional figures. Hence, the Centre is justified in forecasting 7.5 per cent GDP growth this fiscal, against 6.7 per cent in FY18.
The rate is higher against 5.6 percent, 6.3 percent and 7.0 percent respectively, in the first three quarters, Q1, Q2 and Q3 of 2017-18.
"Rapid growth in agriculture (4.5%), manufacturing (9.1%) and construction sectors (11.5%) contributed to the overall growth", the Indian government said.
Economic Affairs Secretary Subhash Chandra said all sectors of the economy, including manufacturing, construction and agriculture, did well in the fourth quarter of the last fiscal. The country is expected have a growth rate of 6.9 per cent in 2018, compared to 6.7 per cent in 2017 and eight per cent in 2016.
A barometer of investment, the gross fixed capital formation (GFCF) at current prices is estimated at Rs 47.79 lakh crore in 2017-18 as against Rs 43.52 lakh crore in 2016-17.
Economists are predicting a further pick-up in activity during the current financial year on the back of higher consumption demand, a stable GST and a surge in investment towards end of the year.
NEW DELHI, May 31 (Reuters) - The Indian economy grew 7.7 percent year-on-year in January-March, its quickest pace in almost two years driven by higher growth in manufacturing, the farm sector and construction. "We should however be wary of the headwinds the economy faces in the coming quarters from higher crude prices feeding into inflation and rising inflation expectations".
"We have cut our FY19 GDP forecast by 20 basis points taking into account rising oil prices and potential global trade wars", said Teresa John, economist, Nirmal Bang Institutional Equities. We retain it at that level... there is no one-to-one relation between the oil price growth and the GDP growth. The International Monetary Fund expects economic growth could reach 7.4 percent in 2018/19.
Monsoons deliver about 70 percent of India's annual rainfall and are the lifeblood of its $2.5 trillion economy, spurring farm output and boosting rural spending.
Moving on, interim Finance Minister Piyush Goyal, said, "GDP has been increasing continuously every quarter with 7.7% Q4 GDP".