Indian Economy Is World’s Fastest Growing; Again Beats China In Annual Growth At 7.2%
The economy grew at a 7.2% rate, but RBI estimated a growth of 7.4%.
India has reached new levels today in the economy field, and this is something to be very proud of! Indian economy has bagged the title of ‘Fastest Growing Economy’ and this is not the first time – although it is a tad bit lower than what RBI suggested.
RBI estimated growth in the current economy of about 7.4% in the current fiscal year that ends in March (2018-19), but the economy grew at a 7.2% which is also worth appreciation. 6.75% growth was recorded in last year, 2017-18.
Private Consumption and Indian Economy
S .C. Garg, the secretary of economic affairs praised the growth of the Indian economy, saying that it is a very advance GDP growth numbers for 2018-19. He also remarked that India remains the fastest growing major economy globally.
The chief economist at rating agency Crisil D.K. Joshi said that improvement in private consumption and a stable election outcome will play an important role in sustaining the upswing in overall investments. He also said, “Private consumption was a sore spot with its growth slipping a new to 6.4% from 6.6% as farm incomes and rural wage growth remained weak. The real agriculture GDP growth was strong at 3.8% from 4.5% suggesting farmers are realizing less from their produce.”
Reports in Detail
As per reports, the manufacturing sector is estimated to grow by 8.3% in 2018-19, which is more as compared to last year’s 5.7% while farm sector will grow by 3.8% as compared to last year’s 3.4%. Construction field is set to grow at 8.9% compared to last year’s 5.7%. Financial, real estate and insurance segment was at 6.6% and is expected to grow up to 6.8% this year.
As per D.K. Joshi, the service sectors, which contributed to a large part of India’s growth, have been giving poorer results since several quarters in the past, which is a cause of worry.
On the other hand, growth in government final expenditure is estimated to be at 9.2% compared to 10.9% of last year. “Pick-up in investment is largely government spending from outside the budgeted expenditure, likely from PSU’s and state governments. Private investment has to substitute for this investment for the run-up to be sustainable.”
Conclusively, economic growth of China is expected to be slower than usual and India will again be the fastest growing major economy globally.