The Gross Domestic Product (GDP) during the third quarter of 2017-18 has grown at a rate of 7.2%. The growth has been driven by a pick-up in growth of the manufacturing and serving sectors. The GDP in October-December quarter of 2017-18 had grown by 5.7% in the first quarter of 2017-18 and by 6.5% in the second quarter. With these numbers, India has regained the status of world’s fastest-growing major economy and has beaten China after one year. As per reports, the growth rate is higher than what was being expected.
According to Dr Bibek Debroy, Chairman of the Economic Advisory Council to Prime Minister, the economy is on the track to accelerate. Praising the initiatives done by Prime Minister Narendra Modi in the last year he said, that the current growth shows that the initiative taken by the government has finally started showing the excellent results. The growth in the upcoming quarters is expected to escalate as the government has given the commitment to implement structural reforms. The economic growth will be also aided by the higher growth in the industrial and services sectors.
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With the robust growth of the manufacturing Purchasing Manager’s Index (PMI), Index of Industrial Production (IIP) and consumer demand the GDP trends have remained consistent. As per reports in news agency, the IIP (Q-o-Q % change) grew at 4.38 percent in December 2017 as compared to 0.50 percent in September 2017. After the launch of Goods and Services Tax on July 1, the Indian Gross Domestic Product had seen a great fall in April-June quarter. The demonetisation also impacted it. But, the economic growth picked up to a revised 6.5% annually. After the implementation of GST, economic experts are still expecting the boost in the economic year in the next fiscal year.
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