The government on Thursday revised upwards the economic growth rate upwards to 7.2 percent for 2017-18 from the 6.7 percent estimated earlier.
The government revised the GDP growth of FY17 to 8.2 percent from 7.1 percent earlier, the Central Statistics Office (CSO) data showed. In November 2016, Prime Minister Narendra Modi had announced demonetisation rendering 86 percent of India's total currency in circulation illegal tender.
Reserve Bank of India (RBI) data showed that as on September 30, 2016, the annual rate of growth of bank credit was 12.1 percent, according to a Mint report. That year-on-year growth rate decelerated sharply to 5.4 percent by March 31, 2017, the report added.
Nationalised banks’ credit growth was 2.7 percent in the FY17 second half, compared to 8.8 percent growth in the second half of FY16, a Mint report said, adding that private banks’ credit growth was 10.1 percent in the second half of FY17 compared to 18.8 percent in the year-ago period.
The government also revised FY18 nominal GDP growth to 11.3 percent from 10.0 percent earlier, CSO data showed.
"Real GDP or GDP at constant (2011-12) prices for 2017-18 and 2016-17 stand at Rs 131.80 lakh crore and Rs 122.98 lakh crore, respectively, showing growth of 7.2 percent during 2017-18 and 8.2 percent during 2016-17," CSO said.
Earlier, the CSO in its advance estimate had pegged the GDP growth rate for 2018-19 at 7.2 percent.
"The First Revised Estimates for 2017-18 have been compiled using industry-wise/institution-wise detailed information instead of using the benchmark-indicator method employed at the time of release of Provisional Estimates on 31st May, 2018," said the Central Statistics Office (CSO).
India GDP Annual Growth Rate
The CSO has also released the second revised estimates of national income, consumption expenditure, saving and capital formation for 2016-17.
During 2017-18, the growth rates of primary (comprising agriculture, forestry, fishing and mining and quarrying), secondary (comprising manufacturing, electricity, gas, water supply and other utility services, and construction) and tertiary (services) sectors have been estimated as 5 percent, 6 percent and 8.1 percent as against a growth of 6.8 percent, 7.5 percent and 8.4 percent, respectively, in the previous year.
With PTI inputs.