GDP numbers reflect continuing trajectory of growth: Bibek Debroy

Prime Minister's Economic Advisory Council Chairman Bibek Debroy on Friday said the GDP estimates for the fourth quarter of FY18 reflected continuity in the momentum of the growth trajectory.

The fourth quarter estimate of Gross Domestic Product (GDP) released by the Central Statistics Office (CSO) estimated the growth rate at 7.7 percent as against 5.6 per cent, 6.3 per cent and 7 per cent respectively in the first three quarters.

"Q4 registered the strongest quarterly growth last financial year indicating a broader continuity in growth acceleration trends," said a statement issued by Debroy's office.

Debroy said that the key sectors of the economy were experiencing steady growth.

"The improved growth numbers are due to the government's consistent effort in implementing bold structural reforms. Goods and Services Tax, Insolvency and Bankruptcy Code, bank recapitalization, 100 per cent village electrification, repealing archaic laws, simplifying doing business have all contributed positively towards growth," he said.

He added that sound macroeconomic management by the government combined with weather office's prediction of normal monsoon was likely to further boost consumer demand, particularly rural demand, in the economy.

The NITI Aayog Member said the government had done well in keeping inflation and fiscal deficit under check.

"The retail price inflation has remained close to 3.6 per cent during 2017-18."

The RBI, in its Monetary Policy Report of April, projected the Consumer Price Inflation (CPI) to rise from 4.4 per cent to 5.1 per cent in the first quarter of FY19 on the back of crude oil prices shooting up.

"The inflation concern is genuine; however, a normal monsoon combined with a prudent fiscal policy being followed by the government would help keep the overall inflation under control," Debroy said.

--IANS

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