Bikky Khosla | 06 Mar, 2018
was unexpected but obviously
Gross Domestic Product (GDP) of the Indian economy grew 7.2 percent
in the October-December quarter of 2017-18, the fastest in five
the economy has
the world's fastest growing major economy tag.
criticism over the Rs 12,600-crore fraud in PNB, it must
big relief to
the government as well. Most
importantly, the figures signal that the economy is on the recovery
are plenty of positive takeaways from the third quarter GDP figures.
They show strong manufacturing growth. The sector grew 8.1 percent in
the period and is projected to expand at 5.1 percent for the full
year, compared with 7.9 percent growth in the previous year. Also,
strong growth in capital formation is a good sign. Its growth
accelerated from 6.9 percent in second quarter to 12 percent in third
quarter, signalling revival in investment. Also, a healthy 6.8
percent growth in the construction sector adds to the positivity.
sales of commercial vehicles, sharp
rise in cement
production and higher capital goods output support
the view that investment
finally picking up, albeit gradually. There
are some concerns like low GVA growth and slowing consumer spending.
to high contribution of the government sector which
is why fiscal
But there are enough signs that the economy is growing even
without government support. Now,
the government should step in to help private
investment build on
the initial success.
the Nikkei India Services Purchasing Managers' Index showed that
the service sector's output contracted in February, the first time
since November, due to rising price pressure
The index slid to 47.8 in February--the
lowest since August--from
51.7 in January. This is not a good sign and the trend needs to be
urgently. The sector contributes 60 percent to the economy, and at a
time when job creation has posed the biggest challenge to the
government, the sector demands
invite your opinions.