Supported by good growth in manufacturing and services, India’s economy grew by 7.3 per cent during 2014-15, the first financial year of the new government, up from 6.9 percent a year ago, showing signs of recovery. As per the provisional estimates of Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, for the Financial Year 2014-15, GDP Growth at basic prices increased 0.6% from 6.6% to 7.2%, while GDP growth at market prices increased from 6.9% to 7.3%. This increase happened despite a decline in agriculture growth from 3.7% in Financial Year 2013-14 to 0.2 % in Financial Year 2014-15.
The manufacturing growth increased substantially from 5.3% in Financial Year 2013-14 to 7.1% in Financial Year 2014-15, while Services growth increased substantially to 10.2% in Financial Year 2014-15 from 9.1% in Financial Year 2013-14.Within services, financial, real estate, and professional services increased from 7.9% in FY 2013-14 to 11.5% in FY 2014-15. The Finance Ministry further added that the capital formation increased from 3% in FY 2013-14 to 4.6% in FY 2014-15. Private Consumption remained broadly constant, while Government consumption decreased during from 8.2% in FY 2013-14 to 6.6 % in FY 2014-15.
India clocked 7.5% growth in January-March quarter, overtaking China which showed a growth of 7.4 percent in same quarter. The economic growth rate measured in terms of GVA for the January-March quarter improved to 6.1 percent as against 5.3 percent a year ago. The manufacturing sector recorded a growth rate of 8.4 percent during the last quarter of the last fiscal, up from 4.4 percent a year ago. Services sector too witnessed marked improved, though agriculture, mining and quarrying sectors were lagging. Output of mining and quarrying sector decelerated to 2.3 percent in the fourth quarter of the last fiscal as compared to a growth of 11.5 percent during the same period in 2013-14, while the agriculture output during the quarter declined by 1.4 percent as compared to a growth of 4.4 percent in the corresponding quarter of the previous fiscal.
The CSO has also revised the figures for three quarters of the last financial year. The GDP for the first quarter was revised to 6.7 percent, from 6.5 percent; for Q2 to 8.4 percent, from 8.2 and for Q3 to 6.6 percent from 7.5 percent. Gross Value Added (GVA), a new concept introduced by CSO to measure economic activity, rose by 7.2 percent in 2014-15, compared to 6.6 percent in the previous fiscal.
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