India’s economy registered the highest growth rate globally in the quarter ending March 2018, with this growth pegged at 7.7 per cent. The value is based on data published by the Central Statistics Office.
While the growth in Q4 was remarkable, there was a decline in the overall growth rate for the fiscal, with the country having registered a growth rate of 6.7 per cent, down 0.4 per cent compared to the previous financial year.
In terms of sectors, the manufacturing sector contributed the most to the economy’s growth, followed by buoyed government spending, primarily on defence and public administration. The contribution of agriculture and forestry in the quarter’s growth was limited to just 9.4 per cent.
China, seen as India’s closest competition in terms of economic growth clocked a growth rate of 6.8 per cent in the fourth quarter.
Following this healthy performance, the government has retained its growth projection of 7.5 per cent for FY18-19.
The success of net indirect taxes (NIT) helped the nation achieve this rate, with NIT growing by 9.1 per cent.
In terms of year-on-year growth, the public administration sector saw a 10 per cent increase compared to FY17. The manufacturing sector and agriculture sector grew by 7.2 per cent and 3.4 per cent respectively.
The government also collected a total of Rs.7.41 trillion through GST in a period of nine months.
The financial sector, which has been hit by increasing NPAs contributed 12 per cent towards the GDP growth.