Potential of New India
- The Indian economy grew 8.2% — the highest in two years — in the April-June quarter, driven by robust growth in the manufacturing, construction and farm sectors.
- The pace of growth was the highest since the 9.3% rise reported for the January-March quarter of 2016.
- The latest figures, however, come on a lower base of 5.6% growth in the first quarter of 2017-18.
- Finance Minister Arun Jaitley tweeted that achieving a growth rate of 8.2% in “an environment of global turmoil” represented the “potential of New India.”
Rising
- The manufacturing sector grew 13.5% in the first quarter of 2018-19, as against a contraction of 1.8% a year earlier, while the construction sector grew 8.7%, compared to a growth of 1.8% in the first quarter of last year.
- The Gross Domestic Product (GDP) at constant (2011-12) prices in the first quarter of 2018-19 is estimated at Rs.33.74 lakh crore as against Rs.31.18 lakh crore in Q1 of 2017-18, the Central Statistics Office said in a statement.
Going forward
- Going forward, the base effect will not be so favourable.
- And when we reach Q3 and Q4, the rate of growth may decline and the annual growth rate may be more or less like last year's.
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