Indian economy grew 7.7% in Q4 |ForumIAS

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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% (4^th quarter) and 5.7% for the entire FY18.
- Construction sector grew at 11.5% (4^th quarter) and 5.7% for the entire FY18.
- Agricultural sector grew at 4.5% (4^th 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.