The Third quarter (Q3) estimate of Gross Domestic Product released by the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation estimates the GDP to grow at 7.2 percent Q3 (2017-18). As per CSO, “Real GDP or GDP at constant prices has reached ₹ 32.50 lakh crore in Q3 2017-18 as against ₹ 30.32 Lakh crore in Q3 2016-17. The Real GVA, i.e, GVA at basic constant prices (2011-12) is expected to increase from 112.48 lakh crore in 2016-17 to 119.64 lakh crore in 2017-18.

Endorsing the uptick in GDP growth numbers, the Chairman of the EAC to PM, Dr BibekDebroy is of the view that the economy is in the right track to accelerate and the current expansion in the growth rate reflects that the reforms initiated by the government have started showing results. The Chairman further asserted that the growth will pick up more in the upcoming quarter driven by the government commitment to implement structural reforms and aided by higher growth in the industrial and services sector and central government spending.

The Chairman of EAC to PM said that the GDP trends are consistent with the robust growth of the manufacturing Purchasing Manager’s Index (PMI), Index of Industrial Production (IIP) and consumer demand. The IIP (Q-o-Q % change) grew at 4.38 percent in December 2017 as compared to 0.50 percent in September 2017. The fast recovery in the economic indicators like IIP, PMI and consumer demand reflects a positive economic sentiment and that India is on the right path to become one of the fastest major economy in the World surpassing China.

Economic growth strengthened as industry, services and government spending signal accelerating activity following structural reforms. Third-quarter national accounts show year-on-year expansion in GDP and gross value added, with growth attributed to stronger industry and services performance and central government spending. Manufacturing PMI, Index of Industrial Production and consumer demand are cited as corroborating indicators of improving economic activity and sentiment, and the commentary links the uptick to the early effects of structural reforms expected to sustain further acceleration.