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What’s driving the GDP revival?
News :
- The Indian economy is at a golden phase. The economy grew at 7.7% in the January-March quarter, 2018.
Important facts
2. The FY2016-17 saw two major changes in the Indian economy, namely, Demonetization and Goods and Service Tax (GST). The Indian economy has balanced itself considerably well.
3. Manufacturing sector, construction sector, trade, hotels, transport and communication, financial services and real estate grew considerably well at the last quarter of FY17-18.
4. Growth in construction, trade, manufacturing and services is particularly beneficial for job generation.
5. Private investment has also seen a growth in the last quarter of FY17-18. This is driven by commodity prices, lower interest rates and corporate debts.
6. By breaking down the GVA, the fastest growing sectors for the entire FY17-18 are the public administration, defence and other services.
7. These sectors are driven by Seventh Pay Commisions recommendation which entitles higher salary, HRA and other benefits to government staff.
8. The government could sustain these high expenses because of GST and high Excise duty on oil.
9. But with rise in oil prices, there is a demand by the consumers to reduce the duties levied on it.
