Indian economy seen growing at 7.2% in 2018-19
08 Jan 2019
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The Indian economy is expected to grow at a faster rate of 7.2 per cent in the current financial year, against the 6.7 per cent growth recorded in the previous financial year (2017-18), as per the latest projections of the Central Statistics Office (CSO).
Growth in India’s gross domestic product (GDP) is seen to be boosted by higher production in the manufacturing, services and agriculture sectors.
India’s real GDP at constant (2011-12) prices is estimated to reach Rs1,39,52,000 crore by the end of the financial year 2018-19, which is 7.2 per cent higher than the provisional estimate of Rs1,30,11,000 crore for the year 2017-18, as per the first advance estimates released on Monday.
The country’s GDP had expanded at a slower pace of 6.7 per cent in 2017-18.
Real GVA (gross value added) at basic constant (2011-12) is anticipated to increase from Rs1,19,76,000 crore in 2017-18 to Rs1,28,09,000 crore in 2018-19. Anticipated growth of real GVA at basic prices in 2018-19 is 7.0 per cent against 6.5 per cent in 2017-18.
Growth is expected to get a boost from utility services like electricity, gas, water supply etc as also sectors like construction, manufacturing, public administration, defence and other services, which recorded above 7 per cent growth.
Economic activities like `trade, hotels, transport, communication and services related to broadcasting’, `financial, real estate and professional services’, `agriculture, forestry and fishing’ and `mining and quarrying’, are estimated to grow at 6.9 per cent, 6.8 per cent, 3.8 per cent and 0.8 per cent, respectively.
GVA at basic prices from ‘agriculture, forestry and fishing’ activities for 2018-19 is estimated to grow by 3.8 per cent against the 3.4 per cent growth in 2017-18.
GVA at basic prices from ‘mining and quarrying’ for 2018-19 is estimated to grow by 0.8 per cent against the 2.9 per cent growth recorded in 2017-18.
GVA at basic prices from ‘manufacturing’ for 2018-19 is estimated to grow by 8.3 per cent compared to a growth of 5.7 per cent in 2017-18.
GVA at basic prices from ‘electricity, gas, water supply and other utility services’ for 2018-19 is expected to grow by 9.4 per cent against the 7.2 per cent growth recorded in 2017-18.
GVA at basic prices from ‘construction’ sector for 2018-19 is expected to grow by 8.9 per cent against a growth of 5.7 per cent recorded in 2017-18.
The estimated growth in GVA from `trade, hotels, transport and communication and services related to broadcasting services’ during 2018-19 is estimated at 6.9 per cent against a growth of 8.0 per cent in the previous year.
Growth in GVA from `financial, real estate and professional services’ during 2018-19 is estimated at 6.8 per cent against a growth of 6.6 per cent in 2017-18.
GVA at basic prices for 2018-19 from `public administration and defence and other services’ is estimated to grow by 8.9 per cent against the 10.0 per cent growth recorded in 2017-18.
Per capita income
Per capita income in real terms (at 2011-12 prices) during 2018-19 is likely to attain a level of Rs91,921 compared to Rs86,668 for the year 2017-18. The growth rate in per capita income is estimated at 6.1 per cent during 2018-19, as against 5.4 per cent in the previous year.
At current prices, GDP, which is derived by adding taxes on products net of subsidies on products to GVA at basic prices, is likely to attain a level of Rs1,88,41,000 crore in the year 2018-19 against Rs1,67,73,000 crore in 2017-18, showing a growth rate of 12.3 per cent.
