7.7-pct GDP growth rate shows India's economy on uptrend: business leader

“On the domestic front growth should benefit from an acceleration in rural consumption supported by higher minimum support prices and a normal monsoon” Moody’s said

“On the domestic front growth should benefit from an acceleration in rural consumption supported by higher minimum support prices and a normal monsoon” Moody’s said

Rapid growth in agriculture (4.5%), manufacturing (9.1%) and construction sectors (11.5%) contributed to the overall growth.

Encouraged by the quarterly surge, the government on Thursday said it is keeping its forecast of GDP growth of 7.5 per cent for fiscal year 2018-19 unchanged.

India's GDP grew slightly better than expected at 7.7% for the quarter ending March 31, 2018, raising the prospect of an interest rate hike by the country's central bank later this year.

Growth for the 2017-2018 financial year as a whole came in at 6.7%, according to provisional figures.

The growth rate for 2017-18 was higher than the government's first and second advance estimates - at 6.5% and 6.6% - and in sync with what the International Monetary Fund, the World Bank and the Economic Survey had estimated.

Besides a sharp spike in investment activity and public spending, the low base effect of 6.1% growth in the corresponding quarter due to demonetisation may have pushed up the growth rate in the fourth quarter of 2017-18.

Mining and quarrying did not perform well in January-March as GVA of the segment grew at 2.7 per cent in the fourth quarter, down from 18.8 per cent in the year-ago period.

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Growth in Asia's third-largest economy, reported by the ministry, trumped forecasts in a Reuters poll of annual growth at 7.3 percent.

The gross national income at current prices is estimated at Rs 165.87 lakh crore during 2017-18, as compared to Rs 150.77 lakh crore during 2016-17, showing a rise of 10 percent.

The financing, real estate and insurance sector's growth lower at 5 percent against 6.9 percent in December 2017.

At constant (2011-12) prices, the GFCF is estimated at Rs 40.88 lakh crore in 2017-18 as against Rs 37.98 lakh crore in 2016-17.

If the poll is right, January-March would have the fastest expansion since before the government's surprise decision in November 2016 to scrap high-value currency notes and a botched implementation of a goods and services tax (GST) in July previous year stalled growth.

The private corporate sector growth (which has a share of over 70 per cent in the manufacturing sector) as estimated from available data of listed companies with BSE and NSE was 9 per cent at current prices during 2017-18.

"While Indian economy is in cyclical recovery led by both investment and consumption, however, higher oil prices and tighter financial conditions will weigh on the pace of acceleration", Assocham secretary general D S Rawat said.

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