Government revises FY18 GDP growth to 7.2% from 6.7% earlier

The government Thursday revised the economic growth rate upwards to 7.2 per cent for 2017-18 from the 6.7 per cent estimated earlier, mainly driven by performance of farm sector.

"Real GDP or GDP at constant (2011-12) prices for 2017-18 and 2016-17 stand at Rs 131.80 lakh crore and Rs 122.98 lakh crore, respectively, showing growth of 7.2 per cent during 2017-18 and 8.2 per cent during 2016-17 (from earlier estimate of 7.1 per cent)," the CSO said.

For the current fiscal, in May, the CSO in its advance estimate had projected a growth rate of 7.2 per cent.

The 2017-18 growth is lowest in four years. The previous low at 6.4 per cent was recorded in 2013-14.

"The First Revised Estimates for 2017-18 have been compiled using industry-wise/institution-wise detailed information instead of using the benchmark-indicator method employed at the time of release of Provisional Estimates on 31st May, 2018," said the Central Statistics Office (CSO).

The CSO has also released the Second Revised Estimates of National Income, Consumption Expenditure, Saving and Capital Formation for 2016-17.

The statistics office further said growth in the Gross Value Added (GVA) during 2017-18 was 6.9 per cent, down from 7.9 per cent in the previous fiscal.

During 2017-18, the GVA growth rates of primary (comprising agriculture, forestry, fishing and mining and quarrying), secondary (manufacturing, electricity, gas, water supply and other utility services, and construction) and tertiary (services) sectors have been estimated as 5 per cent, 6 per cent and 8.1 per cent as against a growth of 6.8 per cent, 7.5 per cent and 8.4 per cent, respectively, in the previous year.

As regards the per capita income, the CSO's first revised estimate said it was Rs 1,04,659 and Rs 1,14,958 for 2016-17 and 2017-18, respectively.

Gross Capital Formation (GCF), a barometer of investment activities, at current prices has been estimated at Rs 55.27 lakh crore for 2017-18, compared to Rs 47.41 lakh crore during 2016-17.

Giving reasons for variations in growth figures between provisional estimates (released in May 2018) and first revised estimates of GVA, CSO said it is based on updated figures on new data related to crop production and financial data.