The private services sector’s contribution to GDP growth was much lower in Q4. Also, much of the growth was due to government expenditure—the “public administration, defence and other services” sector. Indeed, the non-farm private sector growth, at constant prices, was 7.2% in Q4 of FY18, lower than the 7.4% growth notched up in Q3. While GDP growth at current prices has decelerated from 11% in Q3 FY18 to 10.9% in Q4, GDP growth at constant prices has gone up from 7% to 7.7%. Lastly, the data shows a substantial drag on GDP growth due to the external sector—simply put, export growth is much slower than import growth.

Source: Mint June 01, 2018 03:00 UTC