Central Statistical Office on 30th Nov 2016 announced India’s GDP accelerated to 7.3 percent in the second quarter of 2016-2017. This is up from a provisional 7.1 percent expansion in Q1.
Gross Value Added rose to 7.1 percent.
GDP growth accelerated in the second quarter from 7.1 percent, but GVA growth slowed 7.3 percent in that period.
Both GDP and GVA growth were slower in this Q2 compared to 2015-2016’s Q2. The Q2 of 2015-2016 showed a GDP growth of 7.6 percent and GVA growth of 7.3 percent.
The agriculture sector maintained the overall growth by registering a 3.3 percent GVA growth rate in Q2 of this financial year in comparison with 2 percent in Q2 of 2015-16.
The manufacturing sector saw considerable slowdown as it registered GVA growth of 7.1 percent in Q2 of this financial year as against 9.2 percent in 2015-2016’s Q2.
The mining and quarrying sector growth fell by 1.5 percent in Q2 compared with the contraction of 0.4 percent in the first quarter and a growth of 5 percent in Q2 of 2015-16.
Sectors like manufacturing, electricity, mining, services and others show a fall in the September quarter because they are not supported by demand.
Except for agriculture, public administration and construction, drop in outputs across all sectors took place.
Gross fixed capital formation equalled 29 percent of GDP in this Q2 compared to 32.9 percent in the previous year’s Q2.
Government final consumption expenditure was 13 percent of GDP in this Q2 compared to 12.1 percent in the earlier year. GFCE grew 18.8 percent in this Q1 and 15.2 percent in this Q2.
Government’s Capital Expenditure (Plan and Non Plan) fell 12.81 percent to INR 129459 crore as against INR 143329 crore a year back.
What is GDP?
GDP: Monetary value of all finished goods and services produced in a country in a certain time period. It is generally calculated on annual basis; it can be computed on quarterly basis as well.
It is a broad measurement of nation’s overall economic activity.
GDP = Private consumption+ Public consumption+ Government outlays+ Investments + Exports - Imports.
Where, GDP = C + G + I + NX
- C = all private consumption, or consumer spending
- G = sum of government spending,
- I = sum of all the country's investment, including businesses capital expenditures and
- NX is the nation's total net exports, calculated as total exports minus total imports (NX = Exports - Imports).