The Central Statistics Office’s provisional estimate of national income released shows that the economy grew at 7.6 per cent in 2015-16.
The 7.9 per cent jump in the GDP growth rate in Q4 (January-March 2016) is the highest among the four quarters in the last financial year.
The higher economic growth is on account of high domestic consumption. But it does pose a danger of the re-emergence of inflation unless the monsoon is spot on this time
However, Corporate investment is not much picking up, most of the investment is due to the public sector.
- The agriculture sector grew 1.2 per cent. The sector contracted 0.2 per cent in the previous year.
- Manufacturing grew 9.3 per cent. But this is much higher than the 5.5 per cent seen in 2014-15.
- The consolidated services sector grew 8.8 per cent in 2015-16. .
- Real GDP or GDP at constant (2011-12) prices for the year 2015-16 is now estimated at Rs.113.50 lakh crore ($2.3 trillion) showing a growth rate of 7.6 per cent.