Indian economy grows 8.2% in Q1 2018-19

Gross domestic product (GDP) in the first quarter of 2018-19 rose by 8.2 per cent to around US$465.5 billion, while gross value added (GVA) during the quarter rose by 8 per cent to US$436.3 billion

August 31, 2018

The result was primarily driven by a more than 7 per cent growth in sectors of manufacturing, utility services, construction, public administration, defence and other services

Strong performance in the first quarter will help the nation's’ US$2.6 trillion economy to grow by as much as 7.5 per cent over the financial year ending March 31, 2019

The nation’s foreign direct investment (FDI) equity inflow over the first quarter of 2018-19 was recorded at US$12.8 billion, marking a rise of 23 per cent from previous year

Over April to June 2018, India’s total export (merchandise and service) was calculated at around US$133.2 billion, while import was valued at around US$158.8 billion

Indian Economy grew at a rate of 8.2 per cent in the first quarter of financial year 2018-19, according to an official announcement on August 31. The report asserted confidence in Government of India’s efforts to strengthen the economy and invite foreign investments. The report stated that India’s gross domestic product (GDP) during the first quarter of 2018-19 rose by 8.2 per cent year-on-year to around US$465.5 billion, while gross value added (GVA) in the quarter rose by 8 per cent to US$436.3 billion. The result was primarily driven by a more than 7 per cent growth in sectors of manufacturing; electricity, gas, water supply and other utility services; construction; and public administration, defence and other services.

 

Meanwhile, the growth in agriculture forestry and fishing; mining and quarrying; trade, hotels, transport, communication and services related to broadcasting; and financial, real estate and professional services was recorded at 5.3 percent, 0.1 percent, 6.7 percent, and 6.5 percent, respectively. The performance indicates towards a bolstering of the economy following a slowdown in the aftermath of certain national policy enactments and global market headwinds. As a result, India’s US$2.6 trillion economy is estimated to grow by as much as 7.5 per cent over the financial year ending March 31 2019. This is compared with the 6.7 per growth in 2017-18, which helped India retain its fastest growing major economy status.

 

The growth figures for the first quarter of 2018-19 beat market expectations of a growth of 7.5-7.6 per cent and was aided by a 8.4 per cent growth in consumption and 10 per cent growth in fixed investment. The nation’s foreign direct investment (FDI) equity inflow over the first quarter of 2018-19 was US$12.8 billion, marking a rise of 23 per cent from previous year. Over April to June 2018, India’s total export (merchandise and service) was calculated at US$133.2 billion, while import was valued at US$158.8 billion. A strong start will help overall annual performance of the economy given continuing weakness in global currencies as well as market uncertainties surrounding India’s upcoming general elections in 2019.

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