New Delhi : The economy is gaining momentum: It grew by 7.9 per cent in the March quarter to consolidate India’s position as the fastest growing economy; it also has a five-year high growth rate of 7.6 per cent for the full fiscal on the back of robust manufacturing.
The country also maintained its lead over China, the world’s second largest economy.
Enthused by the impressive numbers for 2015-16, as against 7.2 per cent in the previous fiscal, the government said the growth rate can go up to 8 per cent in the current fiscal on the back of good monsoon. The farm sector also rebounded into the growth zone, as against a contraction in the previous year, although the rate of expansion was low at 1.2 per cent in 2015-16. The industry lauded the numbers and expressed hope that better monsoon and further reforms will help expand the economy at even a faster pace.
According to the data released by the Central Statistics Office, the growth in manufacturing and farm sectors during the fourth quarter accelerated to 9.3 per cent and 2.3 per cent, respectively. The core sector data in April, too, indicated momentum as it grew at a rate of 8.5 per cent in the month, the highest in the last four years.
Commenting on the GDP numbers, Economic Affairs Secretary Shaktikanta Das said India can move towards 8 per cent growth with better agriculture production. “The various measures that the government has been taking in the last couple of years are beginning to show results and overall there are green shoots…this year hopefully with a good monsoon we should look at a growth closer to 8 per cent,” he said. Finance Secretary Ashok Lavasa said, “We should work towards seeing this (GDP growth) number grow. We are focusing on capital spending in infra and social spending.”
“Good days ahead,” NITI Aayog Vice Chairman Arvind Panagariya tweeted.
India’s growth has been inhibited by back-to-back droughts that have hit the farm sector, which employs nearly 50 per cent of the population and contributes over 15 per cent to the GDP. Simultaneously, a slowdown in the global economy has hurt exports, which have contracted for 17 straight months, raising worries for the government. Finance Minister Arun Jaitley has maintained that India’s GDP growth is “much less” than its potential, reports a wire service.
