It also means India continues to grow faster than China, which posted growth of 6.8% in the first quarter of 2018. "In terms of growth rates, the Gross National Income is estimated to have risen by 6.7 per cent during 2017-18, in comparison to the growth rate of 7.1 per cent in 2016-17".
The minister further said that an vast 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. Cambodia's growth rate for 2018 is expected to be 6.9 per cent, which is more or less consistent with its growth rate of 2017 (6.8 per cent) and 2016 (7 per cent). Economic Affairs Secretary Subhash Chandra Garg said on Monday it was expected that annual growth was between 7.3 and 7.5 percent in the March quarter.
The construction sector's growth rose to 11.5 percent compared with 6.6 percent in the previous quarter.
"GDP at 2011-12 prices in the fourth quarter (Q4) of financial year 2017-18 registered growth rate of 7.7 per cent as against 5.6 per cent, 6.3 per cent and 7 per cent respectively, in the first three quarters, Q1, Q2 and Q3 of 2017-18". There have been various quarters and years when oil prices have gone up but there has been growth also.
The "agriculture, forestry and fishing" sector showed a growth rate of 3.4 per cent as against the previous year's growth rate of 6.3 per cent, while the growth in the "manufacturing" sector was estimated at 5.7 per cent as against the previous year's growth rate of 7.9 per cent. 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.
Moving on, interim Finance Minister Piyush Goyal, said, "GDP has been increasing continuously every quarter with 7.7% Q4 GDP".
Mining sector experiences a growth of 2.7 percent as against 1.4 percent in third quarter. "So we at this moment feel that we should retain (the growth estimate)", he said. However, higher oil prices and tighter financial conditions will weigh on the pace of acceleration. Higher cost of financing is also likely to slow investment and consumption spending across government, households and firms, said Abhishek Gupta, of Bloomberg Economics.
As per the report, India's current account deficit will increase.
Monsoon rains hit the southern Indian state of Kerala on Tuesday, a few days earlier than normal, the country's weather office said, a development that potentially brightens the outlook for agricultural output and the economy. Higher oil prices have already pressured the rupee, near a record low last week and Asia's worst performer.