Sep 3: The best part about an impressive GDP growth of 8.2 per cent for the first quarter of the current fiscal is that it is being led by employment-intensive manufacturing which expanded by 13.5 per cent .Same is true about the construction which again is job-generating sector and grew by 8.7 per cent, said ASSOCHAM President Mr. Sandeep Jajodia.
It said 5.3 per cent growth in agriculture and allied sectors is equally impressive and would lead to further pick up in the rural demand, as the impact of good Monsoon would be reflected in the second and third quarters of the fiscal 2017-18.
There has been an uptick in the Gross Fixed Capital Formation, which means the investment revival is very much visible. Against 31.0 per cent in the first quarter of the previous fiscal, the GFCF at constant prices is 31.6 per cent.
The first quarter GDP numbers augur very well for the entire fiscal 2017-18. While it is early days, the Indian economy seems back to a solid trajectory for further gains in the next few quarters, the chamber said.
The GDP growth numbers for the first quarter of the current fiscal announced today are very encouraging and indicate a further strengthening of the improving trend witnessed over past few quarters. The recovery that is shaping up is broad based and there are clear signs of revival in domestic demand and investments. The double-digit growth in manufacturing comes on back of a low base but does reflect the positive momentum already seen in some of the key lead indicators of economic activity. Also, the forthcoming festive season is expected to bode well for our growth prospects going ahead” said Mr. Rashesh Shah, President, FICCI.
“While the latest growth numbers are quite robust, the volatility in oil prices and Rupee value is exerting some pressure on industry members. These two factors have emerged as the key macro-economic concerns on the horizon. Even as companies are looking at ways to mitigate the impact of the same, these factors can weigh heavy on our growth performance besides having clear implications on the current account and fiscal deficit. The evolving situation requires constant review and swift policy action and support both by the Central Bank and the Government of India. Further, as the global trade environment remains tricky, India should continue to undertake measures to support its exports”, added Mr. Shah.