Indian economy expanded 5.7 percent in the first quarter of FY15, the highest in nine quarters, against a growth of 4.6 percent in Q4 of 2013-14. The economy grew 4.7 percent in the year-ago period. The economy grew at its highest pace since the fourth quarter of FY12.
A CNBC-TV18 poll had estimated Q1 (April-May-June) FY15 GDP growth to come in at 5.8 percent. The broad range for the Q1 GDP was 5.4-6 percent.
The revival in the first quarter was expected to be led by industry. Manufacturing, coming off a low base, was expected to push industries and it did not disappoint. The manufacturing sector grew at 3.5 percent, against a 1.2 percent contraction year-on-year.
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The mining sector too grew at 2.1 percent 2.1 percent versus -3.9 percent YoY.
But all eyes were on agricultural growth, which was expected to disappoint considering the fact that the first quarter is generally a lean period for agriculture. But that too surprised on the positive – the sector grew at 3.8 percent versus 4 percent YoY. A CNBC-TV18 poll had expected the sector to grow at a meager 2.8 percent.
In the quarter under review, trade, hotels sector grew at 2.8 percent versus 1.6 percent (YoY). Construction sector growth came in at 4.8 percent, against 1.1 percent in the year-ago period. Electricity sector expanded 10.2 percent versus 3.8 percent (YoY). The construction sector in the first quarter grew at 4.8 percent versus 0.7 percent (QoQ).
Data released by the Central Statistics Office (CSO) shows private final consumption spend stood at Rs 9.3 lakh crore versus Rs 8.8 lakh crore year-on-year, while the government of India final consumption spend came in at Rs 1.8 lakh crore against 1.7 lakh crore. First quarter financial services growth stood at 10.4 percent versus 12.9 percent YoY.
