Login With Google
GDP grows 8.2% in April-June
Why in the news ?
- According to the government data released, the Indian economy grew at 15-quarter high of 8.2 per cent in the April-June quarter of current fiscal.
- With this, India established its position as the fastest growing major economy.
More in the news
- The upward in a growth is mostly driven by robust growth in the manufacturing, construction and farm sectors.
- The figures raised hopes of a higher than estimated annual growth of 7.5%.
- The gross domestic product (GDP) at constant (2011-12) prices in the first quarter of 2018-19 is estimated at Rs 33.74 lakh crore, as against Rs 31.18 lakh crore in Q1 of 2017-18, showing a growth rate of 8.2 per cent.
- According to the statement, the quarterly GVA (Gross Value Added) show a growth rate of 8 per cent over the year-ago period.
- The manufacturing sector grew 13.5% in the first quarter of 201819, as against a contraction of 1.8% a year earlier.
- Manufacturing growth picked up significantly on the back of higher government expenditure giving households more money to spend.
- Agricultural, forestry and fishing sector recorded growth of 5.3 per cent, up from 3.0 per cent, mainly due to more than a 15 per cent increase in production of rice, coarse cereals and pulses during rabi reason.
- While manufacturing, construction and farm growth picked up pace, services sector growth largely fell during the quarter.
Concept
- GDP is the final value of the goods and services produced within the geographic boundaries of a country during a specified period of time, normally a year.
- Gross Value Added (GVA) provides the rupee value for the amount of goods and services produced in an economy after deducting the cost of inputs and raw materials that have gone into the production of those goods and services.
- GVA also gives sector-specific picture like what is the growth in an area, industry or sector of an economy.
- It is the sum of a country’s GDP and net of subsidies and taxes in the economy.i.e. Gross value added = GDP + subsidies on products - taxes on products.
- While GVA gives a picture of the state of economic activity from the producers’ side or supply side, the GDP gives the picture from the consumers’ side or demand perspective.
- Both GVA and GDP measures need not match because of the difference in treatment of net taxes.
Source
The Hindu, Indian Express.