Business

GDP Growth Drops Down To 5.7 Percent In First Quarter Of This Fiscal

न्यूज़ वर्ल्ड इंडिया | 0
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| August 31 , 2017 , 21:18 IST

The Indian Economy took a steep fall in the first quarter of this financial year as the economic growth rate fell down to 5.7 per cent as compared last year's 7.9 percent.

According to Central Statistics Office (CSO) data, India's GDP for the first quarter of Rs 31.10 lakh crore also took a substantial fall compared to the 6.1 per cent growth in all fourth quarter of the last fiscal.

The CSO release said, "GDP at constant (2011-12) prices in Q1 of 2017-18 has estimated at Rs 31.10 lakh crore, as against Rs 29.42 lakh crore in Q1 of 2016-17, showing a growth rate of 5.7 per cent."

The growth was even lower in terms of Gross Value Added (GVA), 5.6 percent to be exact, which excludes indirect taxes and subsidies.

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Chief Statistician T.C.A. Anant said that the primary reason for the decline in growth was a fall in the manufacturing sector.

Talking to the reporters after the release of the GDP numbers, the statistician said, "Principally, the major sector that has seen a sharp decline in the industry."

"The major reason for the slowdown in growth at 5.7 per cent is on account of manufacturing, where Gross Value Added (GVA) is largely contributed by the private sector. In all, 74 per cent of the GVA comes from the corporate sector. Its performance has been poor, though the sales growth is good," he said.

Anant noted that another reason for the fall in growth rate was the rise in costs on account of prices in intermediate inputs, which has been much higher than last year. He said services and crop production have seen an increase in the first quarter.