The Finance Ministry today said that the Indian economy grew 7.2 per cent in the first half of the current fiscal, retaining its position as one of the fastest growing major economies in the world. The Ministry, in its year-end review, said that inflation has remained in “comfort zone” during the year with retail and wholesale inflation averaging 5.2 per cent and 2.7 per cent, respectively, in the April-October period.
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“The stress given to fiscal consolidation through expenditure rationalisation and revenue raising efforts and the focus on administrative measures for cooperative financial governance and also steps towards containing inflation have contributed significantly to macro-economic stability,” an official statement said.
It further said that during 2016-17, the economy has continued to consolidate the gains achieved in restoring macro-economic stability and despite the continuing global sluggishness and recent pick-up in petroleum prices, the economic growth has continued to be robust and inflation has remained “more or less stable” in the current year.
The statement also said that the fiscal deficit and current account deficit as percentage of GDP have improved, and the growth rate of the economy during the first half of the current fiscal is estimated at 7.2 per cent, which makes India one of the fastest growing major economies in the world.
The growth rates for agriculture and allied sectors, industry and services sectors during the six-month period are estimated at 2.5 per cent, 5.6 per cent, and 9.2 per cent, respectively.
“Inflation measured in terms of Consumer Price Index and Wholesale Price Index has remained in comfort zone during the current Financial Year 2016-17,” the Ministry said.
CPI (Combined) inflation for 2015-16 declined to 4.9 per cent from 5.9 per cent in 2014-15. It averaged 5.2 per cent in 2016-17 April-October period.
Food inflation, as measured by Consumer Food Price Index, declined to 4.9 per cent in 2015-16 from 6.4 per cent in 2014-15. It averaged 6.1 per cent in 2016-17 April-October period.
WPI inflation declined to (-) 2.5 per cent in 2015-16 from 2 per cent in 2014-15. It averaged 2.7 per cent in 2016-17 April-October period.