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NEW DELHI: The Central Statistics Office ( CSO ) on Friday estimated GDP (Gross Domestic Product) growth rate for 2017-18 at 6.5 per cent. The GVA, or Gross Value Added for the current fiscal was projected at 6.1 per cent. GVA is GDP minus net taxes.

The annual growth rate for the fiscal 2016-17 was 7.1 per cent.

Briefing the media after the declaration of the numbers, chief statistician TCA Anant said, "second half (of the fiscal) on average is going to be better than the first half". He also said that the growth in the two remaining quarters (October- December and January-March) is expected to hit 7 per cent.

The figures released on Friday undershoot Reserve Bank of India 's (RBI) GVA projection at 6.7 per cent, thereby deepening concerns of slowdown of the economy. Most private economists had also pared India's growth forecast to 6.2 to 6.5 per cent for the fiscal. The GVA for the previous fiscal was at 6.6 per cent.

Anant however said that the estimates are 'conservative' as the CSO makes the estimates based on actual available data.

The slowdown from the previous fiscal comes mainly on the back of poor performance of agriculture and manufacturing sectors. The data shows that agriculture, forestry and fishing sector is likely to show a growth of 2.1 per cent in its GVA during 2017-18, as against the previous year’s growth rate of 4.9 per cent. Manufacturing sector is estimated to grow by 4.6 per cent as compared to growth of 7.9 per cent in 2016-17. Mining sector also is expected to see sluggish growth.

Index of Industrial Production (IIP), which was a major yardstick for calculating the data was at a three-month low of 2.2 per cent in October, according to the last available data.

The projection is very crucial as it comes amid the finance ministry's preparation of the budget estimates for the next financial year (2018-19). This is also the first full-year growth estimate since the roll out of GST (Goods and Services Tax) which created quite a disruption in the economy.

The GDP growth rate in the July- September period came at 6.3 per cent, recovering from a 3-year low of 5.7 per cent in the April- June quarter.



In Video: Govt estimates GDP for 2017-18 at 6.5%, undershoots RBI projection