India’s Q4 GDP growth rises 7.7%, highest since demonetisation, GST rollout

New Delhi: The Indian economy gained further momentum in January-March 2018 (Q4 FY18), posting a GDP growth of 7.7%, data from the Central Statistics Office showed on Thursday.

This is a touch faster than the 7.2% achieved in October-December 2017—and well above China’s pace of 6.8% for the quarter ending in March.

For the whole of 2017-18, India’s GDP growth came in at 6.7%

A Reuters poll of 55 economists predicted a Q4 GDP growth rate of 7.3%.

The Q4 2018 GDP growth figures are the highest since demonetisation in November 2016 and GST rollout in July 2017. The twin policy shocks disrupted the Indian economy, so much so that its growth fell to 5.7% in the April-June period of 2017. India regained its status as the fastest growing major economy in the world in the October-December quarter.

With GDP growth proving robust and inflation on the rise, the Reserve Bank of India (RBI) may change its policy stance next week. Annual retail and wholesale inflation accelerated in April, mainly due to higher fuel and food prices. A more hawkish central bank is expected at its 4-5 June monetary policy review meeting.

Meanwhile, India’s annual infrastructure output grew 4.7% in April from a year ago, government data showed on Thursday. The growth in output compares with a upwardly revised 4.4% year-on-year growth in March. Infrastructure growth slowed to a three-year low of 4.2% in FY18.

Infrastructure output, which comprises eight sectors such as coal, crude oil and electricity, accounts for nearly 40% of India’s industrial output.

Mint contributed this story