Manufacturing pushes Q1 GDP to 5.7 per cent

According to economists, the agriculture figure of the first quarter is not the reflection of the good monsoon this year as it is based on the rabi output of the previous year.

“The year’s good monsoon may be reflected to some extent in the second quarter and fully in the third quarter,” said Dr B.B. Bhattacharya from the Institute of Economic Growth.

Echoing Dr Bhattacharya’s views, ICRA chief economist Soumitra Chaudhury said the farm sector performance was bound to go up in the next three quarters because of the good monsoon.

“If the non-agriculture sector, which has recorded a growth of around 7 per cent, maintains the pace in the next three quarters and the agriculture sector picks up, then the GDP for the fiscal would be around 6.8 per cent,” he said.

Apart from manufacturing, other sectors which performed well in the first quarter of the fiscal include trade, hotels, transport and communication at 9.6 per cent, financing, insurance, real estate and business services at 7.1 per cent and construction at 5.7 per cent.