GDP estimate replicates success of economic reforms: EAC-PM

Responding to the GDP growth estimate released by the Central Statistics Office (CSO) on Friday, the Economic Advisory Council to Prime Minister Narendra Modi (EAC-PM) opined that the numbers replicate that economic reforms taken by the government are yielding results.

"India's advance GDP growth estimate of 6.5 percent for this fiscal shows reform measures taken by the government is yielding results and growth will accelerate to over seven percent in 2018-19," said Bibek Debroy, Chairman of the EAC-PM.

Debroy further claimed that in the third and fourth quarters of the current fiscal, economic growth will be better than the first half of this financial year, adding that private investments and exports are also expected to witness positive growth.

"Growth numbers will depend on the indirect tax collections. Several indicators have already shown signs of improvement, whether it is the Purchasing Managers' Index (PMI), the high growth in the eight core sector industries or data on car sales," he said.

The growth in GDP during 2017-18 was estimated at 6.5 percent, as compared to the growth rate of 7.1 percent in 2016-17. Real GDP at constant (2011-12) prices in the year 2017-18 is likely to attain a level of Rs. 129.85 lakh crore, as against the Provisional Estimate of GDP for the year 2016-17 of Rs. 121.90 lakh crore, released on May 31, 2017.

On the other hand, Gross Value Added (GVA) at basic constant prices (2011-12) is anticipated to increase from Rs. 111.85 lakh crore in 2016-17 to Rs. 118.71 lakh crore in 2017-18. Anticipated growth of real GVA at basic prices in 2017-18 is 6.1 percent, as against 6.6 percent in 2016-17, the data revealed.

The sectors which registered growth rate of over 7.0 percent are, public administration, defence and other services, Trade, hotels, transport, communication and services related to broadcasting, electricity, gas, water supply and other utility services and financial, real estate and professional services.

The WPI in respect of the groups - food articles, manufactured products, electricity and all commodities, has risen by 2.0 percent, 2.6 percent, 0.4 percent and 2.8 percent, respectively during April-November 2017-18.

Meanwhile, the Consumer Price Index (CPI) has shown a rise of 3.0 percent during April-November, 2017-18.