As per the first advanced estimates of the Central Statistics Office during the announcement of the first advance estimates of National Income 2017–2018, the Gross Domestic Product or GDP will grow at 6.5% this financial year. The economy was at 7.1% in the fiscal year of 2016–2017. The estimate of the same is an essential activity, as the Finance Ministry will be presenting the budget for the fresh period on February 1.
The growth of the real Gross Value Added or GVA is estimated to deplete to 6.1% in the present year from the high of 6.6% the previous year.
The hike in the growth of agriculture, fishing, and forestry sectors is expected to be at 2.1%, which was 4.9% the previous year.
Manufacturing sector anticipated growing at 4.6%, which was 7.9% in the previous financial year.
The progress in the financial, professional service and real estate sector is anticipated to hike to 7.3% from the low of 5.7%, which was noticed in the year 2016–2017.
According to Shubhada Rao, chief economist at Yes Bank, this depletion in the GDP is an effect imposed on the Indian economy due to the transition of GST and as per her speculation, the hotel and manufacturing industries will be affected in a huge way.
However, analysts are still seeing a ray of hope despite the lower economic growth. They are expecting the Reserve Bank of India or RBI to hold the rate of the policies stable even after the retail inflation, which hiked 4.88% in November, reaching the highest in the last 15 months.
Supported by the powerful performance of the sector like steel and cement, refinery, etc. the 8 core sectors grew by 6.8%, which is the highest in the last 13 months.