Statsguru: Growth rate slips in first quarter of FY18

Manufacturing activity slumped to a low of 1.2 in Q1FY18, down from 5.3% in in the previous quarter

India’s economic growth plunged to 5.7 per cent in the first quarter of FY18, underlining the disruption in economic activity caused by demonetisation and the shift to the goods and services tax (GST) regime. Gross domestic product (GDP) had grown by a healthy 7.9 per cent in the first quarter of FY17, as shown in Chart 1. 

Excluding government spending, gross value added (GVA) grew at five per cent, as shown in Chart 2, highlighting the sluggishness in economic activity. But core GVA, which excludes both agriculture and government spending, rebounded from the low of 3.8 per cent in Q4FY17