In what signals the complete revival of Indian economy from the adverse impact of demonetisation and GST-roll out, the GDP for Q1 of 2018-19 has grown at 8.2 per cent, which is the highest in the last 15 quarters. Britain is now the world´s fifth-biggest economy with a GDP of $2.622 trillion past year.
"We predicted growth would be in the range of 7 to 7.5 per cent annually".
"We have informed them that our tax collection data, expenditure plans as well as deficit targeting figures are exemplary. India is witnessing an expansion of the neo middle class", he added.
While the Q1 FY19 GDP growth is higher than market expectations, most analysts estimate the full year growth to be around 7.5 per cent. "And when we reach Q3 and Q4, the rate of growth may decline and the annual growth rate may be more or less like last year's", the Congress leader said in a series of tweets.
Taking to micro-blogging site Twitter, Jaitley said,"India's GDP for the first quarter this year growing at 8.2 per cent in an otherwise environment of global turmoil represents the potential of New India". The Indian economy managed a strong show in the April-June quarter of the current fiscal on the back of strong core performance and a healthy base.
Private sector lender HDFC Bank, in its research report, said that there are some genuine signs of revival in the economy as the major growth is likely to come from the manufacturing and the service sector. The Opposition claimed that the two steps slowed down the Indian economy.
With this, India has become the world's fastest-growing economy, leaving China (6.7 per cent) much behind. "Sustaining GDP growth at over 8% over the next few years would require significant traction in private investments and relentless implementation of reforms to raise productivity". The base effect will not be so favourable. The growth started picking up from Q2-FY18 albeit at a lower pace.
For now, the International Monetary Fund is forecasting Asia's third-biggest economy will grow 7.3% in the fiscal year through March 2019 and 7.5% in the next.
"The outlook for the remainder of the year is not as optimistic", Priyanka Kishore, head of India at Oxford Economics, wrote in a recent note. The earlier 8 percent-plus growth was seen in Q1-FY17.
The sectoral analysis shows that, the manufacturing is the main driver of the growth in Apr-Jun quarter.
The agriculture sector grew at 5.3% compared to 3% last year, while construction also saw a healthy bump (8.7% compared to 1.8% last year).