At 8.2 per cent, GDP clocks highest growth rate in 3 years

Indian economy grows at 8.2 per cent in the April June quarter of current fiscal

At 8.2 per cent, GDP clocks highest growth rate in 3 years

The manufacturing sector rose an annual 13.5% compared to a decline of 1.8% in the year ago quarter, while the crucial farm sector rose 5.3%, up from 3% growth in first quarter of 2017-18.

This is the fastest growth in eight quarters and signals quick turnaround aided by rapid construction activity, consumer spending and corporate investment.

Moody's had, however, in November last year upped India's sovereign rating for the first time in over 13 years to 'Baa2′ with a stable outlook, saying that growth prospects have improved with continued economic and institutional reforms.

He said this while inaugurating the new Competition Commission India office.

"We have informed them that our tax collection data, expenditure plans as well as deficit targeting figures are exemplary". India is witnessing an expansion of the neo-middle class, " Mr Jaitley added.

India is a massive importer of oil, however, and analysts say high crude prices and a tumbling rupee threaten to derail growth. For fiscal 2019, we expect 7.5% growth supported by the third straight year of normal monsoons, reductions in GST-related problems, fading of demonetisation impact, budgetary support to the rural economy, and a low-base effect.

The agriculture sector grew 5.3 percent, from 3 percent in the same period previous year, largely reflecting a strong Rabi or winter sown harvest.

Axis Bank chief economist Saugato Bhattacharya, who correctly predicted 8.2% growth, has also indicated that this "high growth is unlikely to sustain". However, the growth was actually slowed down from 11.5 percent from the preceding quarter.

"Excellent growth performance in I qrtr".

"It has been a remarkable speed of economic recovery in the last 4 quarters- 6.3%, 7%, 7.7% and now 8.2%", tweeted Finance Secretary Hasmukh Adhia. India won back the fastest growing economy tag in October-December 2017 quarter and also hold it for subsequent two quarters.

Industry chamber Assocham said the best part about an impressive GDP growth "is that it is being led by employment-intensive manufacturing". Therefore, mining and quarrying sector is expected to grow by around 5.1 per cent in Q1-FY19, the report said.

The data brought cheers to policymakers, who said it highlighted the measures taken to boost growth and pointed to a solid recovery underway. "Now, to sustain momentum we need more reforms & swift decision making by policy-makers".

Quarterly GVA at basic prices for Q1 2018-19 from financial, real estate and professional services grew 6.5 per cent compared to a growth of 8.4 per cent in Q1 2017-18.

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