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NITI Aayog says prospect of country's GDP growth to be more robust in 2018-19

6 January, 2018

NITI Aayog Vice Chairman Rajiv Kumar has said that the country's GDP growth will become more robust in 2018-19. He was reacting to the growth estimates of 2017-18 released by the Central Statistics Office yesterday. Mr Kumar said the second half GDP growth in 2017-18 has risen to 7 percent, bringing the annual growth rate to 6.5 percent.  NITI Aayog vice chairman pointed out that economic activity has been picking up over the last three quarters and can be expected to strengthen in the coming period with the manufacturing Purchasing Managers' Index (PMI) now reading at a five-year high and FMCG demand going up.
He added that estimates assume significance in the wake of the fact that the higher second-half growth has come despite a weaning of public sector expenditures which had peaked in 2016-17 on account of the implementation of the recommendations of the 7th Pay Commission.
According to CSO data, economic growth is expected to slow to a four-year low of 6.5 percent in 2017-18, mainly due to the poor performance of agriculture and manufacturing sectors.