GDP numbers in line with expectations: DEA Secy

Department of Economic Affairs (DEA) Secretary Subhash Chandra Garg said the Gross Domestic Product (GDP) figures released earlier in the day are in line with expectations.

Addressing a press conference here, Garg noted that the Finance Ministry would retain its growth forecast before FY 19.

"Gross Capital formation growth is about 10 percent, manufacturing and construction sectors have done very well. This indicates a turnaround in the economy. We will not be changing our prediction before FY 19" he said.

With regards to the recent fuel price hike, Garg said the situation is moving towards stabilisation, with crude oil prices gradually dropping.

"Crude oil prices are something which cannot be ascertained. However, we have seen prices stabilising in the last few days. We expect the situation to return to normal soon," he said.

As per data released by the Central Statistics Office (CSO) earlier in the day, GDP growth in the fourth quarter of FY 2017-18 was 7.7 percent, as against 5.6 percent, 6.3 percent and 7 percent respectively, in the first three quarters, backed by rapid growth in agriculture (4.5 percent), manufacturing (9.1 percent) and construction sectors (11.5 percent).

Responding to the same, Finance Secretary Hasmukh Adhia said the GDP growth is an indicator of the fact that structural reforms undertaken by the government are now bringing rich dividends.

"The constant increasing trend of quarterly GDP numbers in the Four-Quarters of 2017-18 at 5.6 percent, 6.3 percent, 7 percent and 7.7 percent indicates that the structural measures of reforms undertaken by Government are now bringing rich dividends in the form of higher GDP Growth Rate. What is most noticeable is the increase in the Growth Rate of GVA of Manufacturing Sector in the last two Quarters of 2017-18 at 8.5 percent and 9.1 percent at constant price. We would like to believe that GST has given a big boost to the Industrial Sector," Adhia tweeted.

Furthermore, Piyush Goyal, who is temporarily in charge of the Finance Ministry, opined that the economy is on the right track and set for even higher growth in the future.

"GDP growth has been increasing continuously every quarter with growth of 7.7 percent in Q4 of 2017-18. Shows that the economy is on the right track and set for even higher growth in the future. This is the #SahiVikas under the leadership of PM Narendra Modi ji and Arun Jaitley ji," he tweeted.

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