Robust growth in mfg. & acceleration in construction mark turnaround in economy : Govt

Speed Post News Network

New Delhi : The Ministry of Finance states that the Second Advanced Estimates released by the Central Stastical Organisation (CSO) on February 28, 2018, indicate a broad-based and significant acceleration of real economic activity as projected in the Economic Survey.                                   ​

Estimates for real GDP growth for 2017-18 have been revised upwards to 6.6 % compared with 6.5 % in the First Advance Estimates. Similarly, real GVA growth for 2017-18 has been revised upwards from 6.1 % to 6.4 %. Real GDP growth for the third quarter is estimated at 7.2 % up from 6.5 % in the second quarter; real GVA growth has accelerated from 6.2 % in Q2 2017-18 to 6.7 % in Q3 2017-18, according to a PIB release.                                                                                    ​

In a statement, the Ministry of Finance states that the growth acceleration has been sectorally broad-based with manufacturing growth estimated at 8.1 % for Q3 2017-18 up from 6.9 % in Q2 2017-18; construction growth at 6.8 % in Q3 2017-18 up from 2.8 % in Q2 2017-18; and services growth projected to accelerate to 7.7 % in Q3 2017-18 from 7.1 % in Q2 2017-18. The Ministry states that the such robust growth in manufacturing and significant acceleration in construction mark a turnaround in the country’s economic growth momentum.                                                                                       ​

Significantly, heralding an improvement in the investment climate, real gross fixed capital formation is estimated to grow at a robust 7.6 % for 2017-18 accelerating from 6.9 % in Q2 2017-18 to 12% in Q3 2017-18, it concluded.