However, for the fiscal year that ended March 31, India's growth rate works out to 6.7 per cent, down from 7.1 per cent in 2016-17. For the full year (2017-18), GDP expanded at 6.7 per cent, lower than the 7.1 per cent recorded in the previous year.
Moody's Investors Service, a credit rating firm on Wednesday estimated a 7.3 per cent growth in Indian Gross Domestic Product (GDP) for the year 2018, thereby cutting it down from a previously projected 7.5 per cent.
The minister further said that an enormous growth in the field of manufacturing, agricultural and the construction has also been recorded, while highlighting that the manufacturing and construction areas also provide employment. Demand seemed to have picked up on the back of a concerted increase in government spending, from 10.3 per cent of GDP in 2016-17 to 10.8 per cent a year ago at constant prices, perhaps largely on account of pay panel obligations.
Real GVA (at basic constant 2011-12 prices for 2017-18) is now estimated at Rs 119.76 lakh crore, showing a growth rate of 6.5 per cent over first revised estimates of GVA for 2016-17 of Rs 112.48 lakh crore.
India also reported 4.7 percent growth in annual infrastructure output in April, signalling a recovery after it slipped to a three-year low of 4.2 percent in 2017/18. He emphasized that this is the development under leadership of Prime Minister Narendra Modi and Union Minister Arun Jaitley.
ASX uncertainty as United States tariffs spark global trade war
One effect of today's developments was further pressure on the peso, which fell to its weakest level in 15 months. European Union officials say the total value of goods targeted is a dollar for dollar response to U.S. tariffs .
Economic Affairs Secretary Subhash Chandra said all sectors of the economy, including manufacturing, construction and agriculture, did well in the fourth quarter of the last fiscal. The moderation in growth was driven by impacts from successive policy shocks of demonetization and the Goods and Services Tax; and the twin balance sheet problem of high corporate leverage and banks' stressed balance sheets.
Health of the banking sector will also be crucial.
Economists are predicting a further pick-up in activity during the current financial year on the back of higher consumption demand, a stable GST and a surge in investment towards end of the year.
The government spending-linked public administration segment's growth rose to 13.3 percent from 7.7 percent in December quarter. The International Monetary Fund expects economic growth could reach 7.4 percent in 2018/19. Possibly, the biggest risk could be rising crude oil prices, which this month hit $80 a barrel, their highest since 2014.
"We have cut our FY19 GDP forecast by 20 basis points taking into account rising oil prices and potential global trade wars", said Teresa John, economist, Nirmal Bang Institutional Equities in Mumbai.