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Indian economy grew 7.7% in Q4
News:
- The Indian economy grew at 6.7% for the entire fiscal year 2017-18 government data shows.
Important facts:
- The economy grew at of 5.6 percent, 6.3 percent and 7% percent in the first three quarters of 2017-18. The fourth quarter grew at 7.7%. It is the fastest and strongest growth in the entire FY1 2017-18.
- Rapid growth of the economy is driven by the capital market, manufacturing and construction sector.
- Growth has been primarily driven by domestic factors as the contribution of net export growth being negative in all four quarters of 2017-18
- However some analyst observe that at present Indian economy is in a good position. Because most macro-prints data are on positive side, especially seen in terms of broad-based industry growth, improving sales data, and positive sentiment as evidenced through the purchasing managers’ index (PMI)
- However, economic growth of 6.7% slowed in 2017-18 compared to 7.1% in 2016-17.
- Sector wise growth rates:
- Manufacturing sector grew at 9.1% (4th quarter) and 5.7% for the entire FY18.
- Construction sector grew at 11.5% (4th quarter) and 5.7% for the entire FY18.
- Agricultural sector grew at 4.5% (4th quarter) and 3.4% for the entire FY18.
- Grossed fixed formation grew at 7.6% for the entire FY18.
- Private final consumption expenditure grew at 6.6% for the entire FY18.
- The economy may be affected by external risks such as rise in crude price and input costs.