Despite what is being anticipated about the prospects of Narendra Modi returning to power, and Bharatiya Janata Party (BJP) led coalition National Democratic Alliance (NDA) forming government at the centre in the 2019 Loksabha elections, in the wake of recent Bypoll losses, Indian economy is growing really well under the current government, as it again became the fastest growing major world economy.
India’s Gross Domestic Product (GDP) growth rate for the 4th quarter (January- March) for Financial Year (FY) 2018 has been recorded at 7.7 percent, surpassing China’s 6.8 per cent. The growth rate was 6.7 percent for the whole fiscal year 2017-18. Not just this, the growth rate for previous quarter (October- December) has been revised and increased to 7.2 percent, from 7 percent, as it was said in February.
Add to it, the agriculture, manufacturing industry and infrastructure sectors recorded impressive growth rates of 4.5 percent, 9.1 percent and 11.5 percent respectively in the fourth quarter. Figures published by government on Thursday, suggest that the GDP has increased at a record highest rate, as it was doing during the second quarter (July- September) of the FY 2016-17 – before demonetization of the Rs 500 and Rs 1,000 old currency notes.
In what can be termed as a major boost to Modi’s chances of electoral success in 2019, and success of his calculation of the effects of demonetisation and Goods and Services Tax (GST), a survey of economists done by Reuters, has forecasted the GDP growth to be 7.3 percent. It has exceeded expectations of the investors at Dalal Street as well, as even they had not assumed that the economy will grow at such a fast rate.
The economy had slowed down during last 1 and a half years, due to demonetisation and GST, but it is now back with a bang, as GDP growth rate has been more than 7 percent in the previous 2 quarters. Economists say, GDP growth will further increase due to monsoon rains, which have arrived in Kerala some days earlier than expected. This will increase the agricultural production, and Indian economy will rise even further.