India's GDP growth slows to 5.7% in April-June 2017 quarter

Decline in manufacturing sector output hits GDP growth

India's Gross Domestic Product (GDP) growth moderated to 5.7% in the quarter ended June 2017 (Q1 of 2017-18) Quarterly Gross Value Added rose at 5.6% in Q1 of 2017-18 over the corresponding quarter of previous year.

The economic activities which registered growth of over 7% in Q1 of 2017-18 over Q1 of 2016-17 are 'trade, hotels, transport & communication and services related to broadcasting', 'public administration, defence and other services' and 'electricity, gas, water supply & other utility services'.

The growth in the 'agriculture, forestry and fishing', 'mining and quarrying', 'manufacturing', 'construction' and financial, insurance, real estate and professional services is estimated to be 2.3%, (-) 0.7%, 1.2%, 2.0% and 6.4% respectively during this period.

GDP is derived by adding taxes on products net of subsidies on products to GVA at basic prices. GDP at current prices increased 9.3% in Q1 of 2017-18. GVA moved up 7.9%, while growth in collection of Union excise duties, customs duties and service tax was 7.3%, 15.0% and 20.4% respectively in Q1 of 2017-18.

The wholesale price index (WPI), in respect of the groups - food articles, minerals, manufactured products, electricity and all commodities, has risen by (-) 1.7%, 5.5%, 2.6%, 0.7% and 2.3%, respectively during Q1 of 2017-18 over Q1 of 2016-17. The Consumer Price Index (CPI) has shown a rise of 2.2% during Q1 of 2017-18 over Q1 of 2016-17.

In terms of GDP, the rates of Private Final Consumption Expenditure (PFCE) at current and constant (2011-2012) prices during Q1 of 2017-18 are estimated at 57.3% and 54.0%, respectively, as against the corresponding rates of 57.4% and 53.6%, respectively in Q1 of 2016-17.

The rates of Government Final Consumption Expenditure (GFCE) at current and constant (2011-2012) prices during Q1 of 2017-18 are estimated at 13.4% and 12.6%, respectively, as against the corresponding rate of 12.2% and 11.3% respectively in Q1 of 2016-17.

The rates of Gross Fixed Capital Formation (GFCF) at current and constant (2011-2012) prices during Q1 of 2017-18 are estimated at 27.5% and 29.8%, respectively, as against the corresponding rates of 29.2% and 31.0 %, respectively in Q1 of 2016-17.

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