GDP growth hits 2-year high

New Delhi: Powered by manufacturing and farm sectors, India, which saw its economic growth accelerate to its fastest pace in over two years, bagged the tag of world’s fastest growing economy after clocking 8.2 per cent jump in April-June quarter of 2018-19, according to the official data on Friday.

The agriculture, manufacturing and construction sectors, major job creators in India witnessed good growth. 

“The GDP growth rate of 8.2 per cent for the Q1  of fiscal year 2018-19 indicates clearly that several structural reforms introduced such as GST have started giving rich dividends. The growth in manufacturing sector (13.5 per cent) also indicates broad based recovery of demand. It has been a remarkable speed of economic recovery in the last four quarters 6.3 per cent, 7 per cent, 7.7 per cent and now 8.2 per cent,” said Dr Hasmukh Adhia, finance secretary.

Finance ministry said that the growth is broad based and has been driven by 8.4 per cent growth in consumption expenditure and 10 per cent growth in fixed investment. “The latter development is particularly encouraging as it has come about over an impressive growth of 14.4 per cent in fourth quarter  of 2017-18 and augurs well for future growth,” it said. 

Crisil Research’s chief economist Dharmakirti Joshi said that a low base aided the growth and also household spending. 

Meanwhile, the government’s finances have shown improvement in July with fiscal deficit at 86.5 per cent of the Budget Estimate, mainly on account of higher revenue collection.