Economists expect GVA to grow higher at 6.3-6.5% in Q1FY18

Agriculture and government spending to drive economy

After slumping to a low of 5.6 per cent in the fourth quarter (Q4) of the previous financial year (FY17), gross value added (GVA) is expected to grow around 6.3-6.5 per cent in the first quarter (Q1) of FY18, say economists. 

Agriculture and government spending will remain the principal drivers of growth, with industrial growth continuing to be sluggish. The downside risks to this forecast stem largely from the performance of the financial sector. 

After two years of back-to-back droughts, a normal monsoon has boosted foodgrain production in the country. The fourth Advance Estimates of crop production released on Wednesday