Q3 growth marks 'turnaround' in India's economy

The Finance Ministry on Wednesday said a robust growth in manufacturing and significant acceleration in construction have marked a turnaround in the country's economic growth momentum.

"Heralding an improvement in the investment climate, real gross fixed capital formation is estimated to grow at a robust 7.6 per cent for 2017-18, accelerating from 6.9 per cent in Q2 2017-18 to 12 percent in Q3 2017-18," a statement by the Ministry read.

It further stated that the Second Advanced Estimates released by the Central Stastical Organisation (CSO) indicated a broad-based and significant acceleration of real economic activity as projected in the Economic Survey.

Estimates for real Gross Domestic Product (GDP) growth for 2017-18 have been revised upwards to 6.6 per cent, compared with 6.5 per cent in the First Advance Estimates.

Similarly, real Gross value added (GVA) growth for 2017-18 were revised upwards from 6.1 per cent to 6.4 per cent.

Real GDP growth for the third quarter was estimated at 7.2 per cent, up from 6.5 per cent in the second quarter; real GVA growth has accelerated from 6.2 per cent in Q2 2017-18 to 6.7 per cent in Q3 2017-18.

The Ministry added that the growth acceleration were sectorally broad-based with manufacturing growth estimated at 8.1 per cent for Q3 2017-18, up from 6.9 per cent in Q2 2017-18; construction growth at 6.8 per cent in Q3 2017-18, up from 2.8 per cent in Q2 2017-18; and services growth projected to accelerate to 7.7 per cent in Q3 2017-18 from 7.1 per cent in Q2 2017-18.