GDP will further improve in next quarters: Jaitley
Union Finance Minister Arun Jaitley on Thursday hoped that the Gross Domestic Product (GDP) will further improve in the coming quarters.
New Delhi : Union Finance Minister Arun Jaitley on Thursday hoped that the Gross Domestic Product (GDP) will further improve in the coming quarters.
The Finance Minister was responding to the real GDP growth data for the Second Quarter of Fiscal Year 2017-18 which was released here today by the CSO (Central Statistics Office).
The GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period.
"Demonetisation and GST's (Goods and Services Tax) impact is behind us. The economy now seems to have weathered the transitional challenges experienced earlier in the year and hopefully in coming quarters, we can look for an upwards trajectory," Jaitley said.
India's GDP growth has recovered to 6.3 percent in the second quarter from a three-year low of 5.7 percent in first quarter.
"Last five quarters had witnessed a downward trend, GDP at 6.3% marks the reversal of that trend. The acceleration in growth this quarter has been helped by a rapid growth in manufacturing which increased from 1.2 percent in the first quarter to 7 percent in the Second Quarter. Robust growth of 7.6 percent in electricity and other utilities, and 9.9 percent in trade, transportation and communications also powered this acceleration. Overall, the services sector recorded a growth of 7.1 percent in the second quarter," the Finance Minister said.
He further added that "encouragingly, the rate of growth of gross fixed capital formation has also increased from 1.6 percent in the first quarter to 4.7 percent in the second quarter. Real private consumption growth has broadly held steady at 6.5 percent".
Finance Secretary Hasmukh Adhia said the GDP number may go up when it is finally revised.
Earlier, Chief Statistician of India and Secretary, Ministry of Statistics and Programme Implementation (MOSPI) Dr. T.C.A. Anant released the Q2 GDP estimates.
"The GDP at constant (2011-12) prices in Q2 of 2017-18 is estimated at Rs 31.66 lakh crore, as against Rs 29.79 lakh crore in Q2 of 2016-17, showing a growth rate of 6.3 percent. Quarterly GVA (Gross Value Added) at basic price at constant (2011-12) prices for Q2 of 2017-18 is estimated at Rs 29.18 lakh crore, as against Rs 27.51 lakh crore in Q2 of 2016-17, showing a growth rate of 6.1 percent over the corresponding quarter of previous year," Dr. Anant said.
The second quarter estimates are based on agricultural production during Kharif season of 2017-18 obtained from the Ministry of Agriculture, Department of Agriculture & Cooperation (DAC), abridged financial results of listed companies from BSE/NSE, Index of Industrial Production (IIP), monthly accounts of Union Government Expenditure maintained by Controller General of Accounts (CGA) and of State Government expenditure maintained by Comptroller and Auditor General of India (CAG).
Performance of key indicators of sectors like transport including railways, road, air and water transport etc., communication, banking and insurance during the period July-September 2017 have been taken into account while compiling the estimates.