GDP growth hits 2-yr high of 8.2 pc in Q1

India's economy grew at 8.2 per cent in the April-June quarter of 2018-19 on strong performance of manufacturing and agriculture sectors, increasing its lead over China to remain the world's fastest growing major economy.

The Gross Domestic Product (GDP) at constant prices (2011-12) had grown at 5.6 per cent in the April-June quarter of last fiscal, according to government data released Friday.

The size of the GDP in the first quarter of 2018-19 was estimated at Rs 33.74 lakh crore, as against Rs 31.18 lakh crore in Q1 of 2017-18, a growth rate of 8.2 per cent, as per the statement of the Central Statistics Office (CSO).

The previous high quarterly GDP growth was recorded in January-March of 2015-16 at 9.3 per cent.

The Chinese economy had expanded at the rate of 6.7 per cent in the April-June period this year.

India's Gross Value Added (GVA) for the quarter under consideration has been estimated at 8 per cent, up from 5.6 per cent in the year-ago period.

The quarterly GVA at constant (2011-2012) prices for Q1 of 2018-19 has been estimated at Rs 31.63 lakh crore, as against Rs 29.29 lakh crore in Q1 of 2017-18, showing a growth rate of 8 per cent over the year-ago period.

The CSO said that manufacturing activities expand at the rate of 13.5 per cent in the quarter under review. The sector had witnessed a decline of 1.8 per cent in similar period last year.

Finance Minister Arun Jaitley said in a tweet that the growth represents the potential of new India. "Reforms and fiscal prudence are serving us well. India is witnessing an expansion of the neo middle class."
In a tweet, Executive Chairman Mahindra Group Anand Mahindra linked the GDP growth number with the Asian Games, saying "...this is like receiving news of a medal... We've been sensing a strong recovery of the economy across our various businesses.This data supports that hypothesis. Now, to sustain momentum we need more reforms & swift decision making by policy-makers..."