ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 19 April. Click Here for more information.
ForumIAS Answer Writing Focus Group (AWFG) for Mains 2024 commencing from 24th June 2024. The Entrance Test for the program will be held on 28th April 2024 at 9 AM. To know more about the program visit: https://forumias.com/blog/awfg2024
Context:
According to official data, the GDP growth has accelerated in the third quarter from the preceding ones in 2017-18
Details:
- GDP growth in the third quarter of financial year 2017-18 was 7.2%
- Growth in GDP was at 6.5% in the second quarter of the current 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.
- Manufacturing sector: 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.
- Agricultural Sector: 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.
- 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.
- The government also marginally increased its estimate for the full year’s growth to 6.6% from its earlier estimate of 6.5%.
Implications:
- 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
