 "Services sector grew at a slightly slower pace of 7.3% in Q1FY19, down from 7.7 % in Q4FY18")
India’s economy grew at a nine-quarter high of 8.2 per cent in Q1FY19, surpassing analyst expectations. As shown in Chart 1, GDP had grown by 7.7 per cent in Q4FY18.
Part of the surge in growth can be traced to a low base effect as economic activity was severely affected last year due to the goods and service tax (GST) and demonetisation. As shown in Chart 2, manufacturing had contracted by 1.8 per cent in Q1FY18 as companies had then de-stocked inventory ahead of the shift to the GST. On this low base, the sector has now grown by a
