Restoring its position as the fastest growing major economy in the world, the Indian economy witnessed 7.2 per cent expansion in the December quarter, according to an official.
Economic Affairs Secretary Subhash Chandra Garg has said strong fixed capital growth also indicates that investment is picking up very well and agriculture and services have performed quite well.
“Very encouraging and solid 3rd quarter growth numbers from CSO. 7.2 per cent growth marks return of India as the highest growing major economy in the world,” Garg said in a tweet.
China’s GDP reportedly grew by 6.8% in the October- December quarter.
“Manufacturing growth at 8.1 per cent and construction growth at 6.8 per cent confirms robust turnaround in industrial economy,” a PTI report quoted Garg as saying.
The finance ministry, meanwhile, said robust growth in manufacturing and significant acceleration in construction in the third quarter of 2017-18 mark a turnaround in the country’s economic growth momentum.
The Indian economy grew at five quarter high of 7.2 per cent in the October-December period reflecting overall recovery due to good show by agriculture, manufacturing, construction and certain services, as per the second advanced estimates of the Central Statistics Office (CSO), news agencies pointed out.
The ministry reportedly said that the growth acceleration has been sectorally broad-based with manufacturing growth estimated at 8.1 per cent for third quarter of 2017-18, up from 6.9 per cent in the second quarter; construction growth at 6.8 per cent, up from 2.8 per cent; and services growth of 7.7 per cent, from 7.1 per cent.
Significantly, heralding an improvement in the investment climate, real gross fixed capital formation is estimated to grow at a robust 7.6 per cent for 2017-18, accelerating from 6.9 per cent in second quarter to 12 percent in third quarter 2017-18, it added.
The economy is expected to grow at 6.6 per cent in the current fiscal ending March 31, as per the second advanced estimates of the Central Statistics Office (CSO), compared to 7.1 per cent in 2016-17, the news reports said, adding that the earlier estimate was 6.5 per cent.