A Four Year Low GDP Growth Estimated for India in 2017-2018
The Gross Domestic Value of India has been estimated at a four year low in the session of 2017-2018. On Friday, the Central Statistical Office, operating under the Government of India, estimated that the GDP of India is estimated to grow at a 6.5% rate.
This value, which was at a 7.1% during the previous fiscal year, has reportedly decelerated due to the marred by the twin policy blow of demonetization and hasty implementation of the goods and services tax.
The Office further reported that agriculture sector is expected to grow at 2.1% in FY18, slower than 4.9% in the previous year, while manufacturing is likely to grow at 4.6%, compared with 7.9% a year ago. Electricity and trade, hotels sectors are the only sectors that will grow at a faster rate of 7.5% and 8.7% in FY18 than in FY17.
Even though the government had assured the citizens that the rates will gradually pace up with the economy, this change has not surfaced in the present rates. The CSO had stated that the advance estimates for 2017-18 are based on economic indicators for the first 7 or 8 months of this financial year, such as Index of Industrial Production of first seven months of the financial year, financial performance of listed companies in the private corporate sector available up July-September quarter, first advance estimates of crop production, accounts of central and state governments, information on indicators like deposits & credits, passenger and freight earnings of railways, passengers and cargo handled by civil aviation, cargo handled at major sea ports, sales of commercial vehicles etc. available for first eight months of the financial year.