The statement said the provisional estimates of national income, for the financial year 2017-18 is estimated at 6.7 percent.
The Indian economy posted a growth rate of 7.7 per cent during the January to March quarter, enabling the country to retain its position as the fastest growing major economy, data released by the Central Statistics Office showed on Thursday. Strong growth in agriculture (4.5 per cent), manufacturing (9.1 per cent) and construction sectors (11.5 per cent) contributed to the overall growth.
The uptick in GDP figure is supported by the buoyancy in the industrial production data in the fourth quarter.The core sector witnessed a growth of 4.7 % in April compared to 4.4 % in March. The GDP grew 7.7 percent on a year-on-year basis, an acceleration from 7 percent in the prior quarter. The manufacturing sector, which witnessed improvement in the last three quarters, is expected to benefit in Q1 of FY19 due to favourable base effect.
Garg said the GDP growth for the whole year at 6.7 per cent was revised upward from 6.6 per cent in the earlier estimate. With a year to go for the general elections, a pick-up in growth could not have been better timed, from the Centre's point of view.
The minister also hailed and credited Prime Minister Narendra Modi and Finance Minister Arun Jaitley for the development. 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.
"(It) seems like we have moved beyond the teething troubles related to GST implementation", said Tushar Arora, a senior economist at HDFC Bank.
Russian crude oil output stagnant but remains above quotas in May
The Iranian light crude price settled at $77.03 per barrel in the mentioned week, Shana reported on Saturday. Hedge funds invested in US oil are betting pipeline bottlenecks will make Texas crude even cheaper.
Health of the banking sector will also be crucial.
However, growth is likely to get a boost from monsoon rains, which hit the southern state of Kerala a few days earlier than normal, potentially brightening the outlook for agricultural output.
The government spending-linked public administration segment's growth rose to 13.3 percent from 7.7 percent in December quarter.
India is rebounding from an economic slowdown, with growth seen at more than 7 percent, only to find itself ensnared by the volatility engulfing emerging markets. India meets 80 per cent of its oil needs from imports.
"A sustained rise in oil prices to $100 a barrel could even lead to a re-emergence of some of the external and currency risks that existed pre-2014", said Priyanka Kishore, head of India and South East Asia economics at Oxford Economics Ltd.