Business

As Q1FY19 GDP Jumps To 8.2%, Chidambaram Hints To Wait For Q3 & Q4

JAVED SAIFI | 0
2817
| September 1 , 2018 , 11:49 IST

The Indian economy riding on growth from the last couple of quarters has reached highest to a more than two years high as the Central Statistics Office (CSO) released growth rate figures on Friday

According to CSO, the Gross Domestic Product (GDP) has jumped to 8.2 percent growth rate for the first quarter (Q1) of 2018-19, improved from 7.7 percent growth rate in the last quarter.

Commenting on an excellent economic growth for the first quarter, the Union Finance Minister Arun Jaitley said, “Despite some headwinds like higher crude oil prices, uncertainties on trade front due to protectionist tendencies in some countries, the Indian economy has performed well. Expect growth for 2018-19 to be very robust.”

Also Read: Indian Economy Has Been In Wrong Direction Since 2014, Says Amartya Sen

"Indian Economy would continue to be a fastest growing economy in the world. A look at the GVA in different sector points towards the fact that Growth of Agriculture Sector in Q1 of 2018-19 was robust at 5.3 percent on top of 4.5 percent growth in Q4 of last FY," he added.

On the other hand, reacting to economic growth stats former Finance Minister and opposition top leaders P Chidambaram said, "Happy that the rate of growth has quickened, but look at the table once again. The Q1 growth rate is based on the lowest base (5.6) in the last 8 quarters."

"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," he added.

The agriculture, forestry and fishing sector growth rose to 5.3 percent as compared to 3.0 percent for the first quarter 2017-18.

The manufacturing sector growth rate has jumped to 13.5 percent as compared to growth of (-) 1.8 percent, electricity, gas, water supply and other utility services sector growth rate has jumped to 7.3 percent as compared to growth of 7.1 percent in Q1 2017-18.

The mining and quarrying growth rate has declined to 0.1 percent as compared to growth of 1.7 percent, Trade, hotels, transport, communication and services related to broadcasting growth rate has declined to by 6.7 percent as compared to growth of 8.4 percent in Q1 2017-18.

The financial, real estate and professional services sector growth rate has declined to 6.5 percent as compared to growth of 8.4 percent and Public administration, defence and other services growth rate has declined to 9.9 percent as compared to growth of 13.5 percent in Q1 2017-18.