India forecasts 2018-19 GDP growth at 7.2% vs 6.7% provisional growth in 2017-18

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India's GDP (gross domestic product) is estimated to grow at 7.2 per cent in 2018-19 compared to 6.7 per cent attained during the previous fiscal, official data showed here on Monday.

"Real GDP or GDP at Constant Prices (2011-12) in the year 2018-19 is likely to attain a level of Rs 139.52 lakh crore, as against the 'Provisional Estimate of GDP for the year 2017-18' of Rs 130.11 lakh crore, released on 31st May 2018," the Ministry of Statistics and Programme Implementation said in "First Advance Estimates of National Income, 2018-19".

"The growth in GDP during 2018-19 is estimated at 7.2 per cent as compared to the growth rate of 6.7 per cent in 2017-18," it added.

Describing the 7.2 per cent GDP growth projection for 2018-19 as very healthy, Economic Affairs Secretary Subhash Chandra Garg on Monday said India remains to be the fastest growing economy in the world.

"Very healthy advance GDP growth numbers for 2018-19. GDP grows by 7.2% compared to 6.7% in 2017-18. India remains fastest growing major economy globally. At current prices GDP grows by 12.3% rising to 188.41 lakh crore. Per capita GDP at current prices rises to Rs. 141447," Garg said in a series of tweets.

He further said an increase in gross fixed capital formation (GFCF) indicates a pick up in investment activities.

"Especially gratifying, impressive and promising is the growth in gross fixed capital formation (GFCF). 12.2% real growth in 2018-19 compared to 7.6% in 2017-18 heralds excellent pick up in investment activity. GFCF as a ratio to GDP has risen to 32.9% from 31.4% in 2017-18," he said.  

He also said that various industries have shown impressive growth and added to the economy.

"Several industry segments record resounding and impressive GVA growth in 2018-19 compared to 2017-18. Manufacturing at 8.3% against 5.7%, Construction at 8.9% against 5.7% and Electricity, Gas, Water Supply and Utilities at 9.4% against 7.2% are star performers," he said.

The Economic Survey tabled in Parliament last year had projected that Indian economy would achieve growth rate of 7-7.5 per cent during 2018-19.

The CSO estimate is, however, a bit lower than 7.4 per cent growth projected by the Reserve Bank for the current fiscal.

(With inputs from agencies)