Indian Economy has been on a roller coaster ride under the Narendra Modi led BJP Government. With the introduction of bold economic moves (Demonetisation and Introduction of GST) affecting the GDP growth rate negatively, Indian economy finally seems to be getting back on the track with the GDP growth approaching a revival threshold value of 7.2% which indicates an all-time high since early 2017.
The Central Statistical Office reported a GDP growth of 7.2% in third quarter of 2017. The healthy growth rate in third quarter ensured that India reclaimed the economy of “World’s fastest growing economy from China”. Riding on the healthy growth rate in the third quarter the full year’s growth now stands at 6.6% after a relatively poor growth rate of 5.7% in first quarter and 6.5% in the first and second quarter respectively.
The final growth rate of 6.6% is marginally better than CSO’s estimation which had projected the annual GDP growth to be 6.5%. The prime reason behind the increase in GDP growth rate is a sharp 12% increase in gross fixed capital formation.
CII(Confederation of Indian Industry) Director General Chandrajit Banerjee said that “The significant improvement in GDP growth, which has accelerated to a robust 7.2 percent in the third quarter as against 6.5 percent in the previous quarter is noteworthy and strengthens the perception that the Indian economy is at the threshold of a sustained rebound in growth,”
Associated Chambers of Commerce (ASSOCHAM) Secretary General DS Rawat said that the good GDP growth numbers paint a “pretty good macro picture” for the Indian economy.
“The 7.2 percent growth in GDP for Q3 also highlights an improvement in investment, manufacturing and construction thereby giving hope for a good pace of economic growth in the next fiscal, as the stage is now set in 2017-18.”
The previous high for GDP growth was recorded at 7.5% in the second quarter of 2016-2017.