CIO Comments on GDP for Q3 FY18 comes in above expectations
29th May, 2018
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GDP growth for Q3 FY18 came in above expectations at 7.2%YoY versus 6.5%YoY growth registered in the previous quarter. The pick-up in GDP growth (highest in five quarters), was helped especially by investment spending, with gross fixed capital formation (GFCF) growing by 15.3%YoY in Q3 FY18—the fastest pace in four years. GVA (Gross Value Added) growth for Q3 FY18 also came in at 6.7%YoY versus 6.2%YoY in the previous quarter. The uptick in growth was helped by pick-up in growth in agriculture sector (4.1%YoY in Q3 vs 2.7%YoY in Q2), manufacturing sector (8.1%YoY in Q3 vs 6.9%YoY in Q2), construction sector (6.8%YoY in Q3 vs only 2.8%YoY in Q2) and the overall services sector (7.7%YoY in Q3 vs 7.1% in Q2). The Central Statistics Office (CSO) also revised upwards the GVA and GDP forecast for FY18 to 6.4% and 6.6% respectively, compared to 6.1% and 6.5% earlier.
With this, India remains on track to grow at above 7% in FY19, and emerge as the fastest growing major economy in the world. Investors should continue to pay their premiums and remain invested to benefit from this India growth story.
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