Major sigh of relief for Modi govt, GDP grows at 8.2 per cent in Q1 of 2018-19

An upswing in manufacturing activity accelerated India's GDP growth rate for the first quarter of 2018-19 to 8.2 per cent, official data showed here on Friday.

Photo: AP. (Representational)

NEW DELHI: In a major sigh of relief for the Narendra Modi government, an upswing in manufacturing activity accelerated India's GDP growth rate for the first quarter of 2018-19 to 8.2 per cent, official data showed here on Friday. The growth cemented India's position as the fastest growing major economy, clocking higher expansion rate than China's 6.7 in the same quarter. According to the Central Statistics Office (CSO), the GDP at 2011-12 prices in the first quarter (Q1) of 2018-19 registered growth rate of 8.2 per cent, up from 7.7 per cent reported for Q4 of 2017-18. "The economic activities which registered growth of over 7 per cent in Q1 of 2018-19 over Q1 of 2017-18 are 'manufacturing', 'electricity, gas, water supply and other utility services', 'construction' and 'public administration, defence and other services'," a statement by Ministry of Statistics and Programme Implementation said. "The growth in the 'agriculture, forestry and fishing', 'mining and quarrying', 'trade, hotels, transport, communication and services related to broadcasting' and financial, real estate and professional services is estimated to be 5.3 per cent, 0.1 per cent, 6.7 per cent, and 6.5 per cent respectively during this period." Commenting on the data, Economic Affairs Secretary SC Garg said the GDP performance in the Q1 raises hope of exceeding estimates of 7.5 per cent for current fiscal. "The economic performance is back to very normal. We had over 8 per cent of quarterly growth last time in the first quarter of 2016-17. Now, after eight quarters,we are at 8.2 per cent. From 8.1 per cent we have come to 8.2 per cent, which signals the economic growth now on a steady high growth path," Garg said. BJP president Amit Shah took to Twitter to congratulate Prime Minister Narendra Modi on Indian's robust GDP performance in the Q1. Shah said India under Modi’s leadership, is now empowered more than ever as it's witnessing transformative changes being ushered in by his government. "India’s rapidly growing GDP is a reflection on the transformative changes being ushered in by Prime Minister Narendra Modi's government. Indian economy is witnessing unprecedented growth in every sector, from manufacturing to agriculture," Shah said. "India's rising economic fortunes mean better prospects for the common man, who will now have more means and opportunities to realise his or her dreams. New India, under PM Modi’s leadership, is now empowered more than ever. My compliments to the PM for this stupendous performance," he added. The BJP chief said the Indian economy was in shambles when Modi took office but an unfazed NDA, the entire cabinet, single-mindedly focussed on putting India back on track. Modi and Finance Minister Arun Jaitley undertook the arduous task of putting fundamentals in place amidst heightened expectations, he said. (With inputs from agencies)