India GDP growth rate revised up at 7.2%

New Delhi - Rural welfare spending set to be hiked 16%

The Indian government on Thursday revised the economic growth rate upwards to 7.2 per cent for 2017-18, from the 6.7 per cent estimated earlier, mainly driven by the performance of the farm sector.
"Real GDP or GDP at constant [2011-12] prices for 2017-18 and 2016-17 stand at ?131.80 lakh crore and ?122.98 lakh crore, respectively, showing growth of 7.2 per cent during 2017-18 and 8.2 per cent during 2016-17 [from earlier estimate of 7.1 per cent]," the Central Statistics Office (CSO) said.
For the current fiscal in May, the CSO in its advance estimate had projected a growth rate of 7.2 per cent. The 2017-18 growth is tje lowest in four years. The previous low of 6.4 per cent was recorded in 2013-14.
"The first revised estimates for 2017-18 have been compiled using industry-wise/institution-wise detailed information instead of using the benchmark-indicator method employed at the time of release of provisional estimates on 31st May, 2018," said the CSO.
The CSO has also released the second revised estimates of national income, consumption expenditure, saving and capital formation for 2016-17.
The statistics office further said growth in the gross value added (GVA) during 2017-18 was 6.9 per cent, down from 7.9 per cent in the previous fiscal.
During 2017-18, the GVA growth rates of primary (comprising agriculture, forestry, fishing and mining and quarrying), secondary (manufacturing, electricity, gas, water supply and other utility services, and construction) and tertiary (services) sectors have been estimated as 5 per cent, 6 per cent and 8.1 per cent, respectively, as against a growth of 6.8 per cent, 7.5 per cent and 8.4 per cent, respectively, in the previous year.
With regards to per capita income, the CSO's first revised estimate said it was ?1,04,659 and ?1,14,958 for 2016-17 and 2017-18, respectively.
Gross capital formation (GCF), a barometer of investment activities, at current prices has been estimated at ?55.27 lakh crore for 2017-18, compared to ?47.41 lakh crore during 2016-17.
Giving reasons for variations in growth figures between provisional estimates (released in May 2018) and first revised estimates of GVA, the CSO said it is based on updated figures on new data related to crop production and financial data.
Rural spending to be hiked 16%
Meanwhile, India is likely to raise its rural welfare spending by 16 per cent for the fiscal year beginning April, two government sources said, as Prime Minister Narendra Modi tries to woo the farm vote ahead of a general election due by May this year.
In its interim budget on Friday, the government is set to earmark about ?1.3 trillion ($18.25 billion) for the Ministry of Rural Development, up from ?1.12 trillion in the current fiscal year, said the sources with direct knowledge of budget discussions. The sources didn't wish to be named as the discussions were not public. Interim Finance Minister Piyush Goyal is likely to announce the increased allocation in his budget presentation to parliament's lower house.
Modi's government is under pressure to step up support for the countryside, where more than two-thirds of India's 1.3 billion people live.
Among the key welfare programmes run by the ministry, the highest allocation will be for the flagship rural job guarantee programme, which enables people in the countryside to seek government-paid work for up to 100 days in a year.

• India