<p>India's economy is set for a slowdown in the financial year ending March 31 with the government pegging the gross domestic product (GDP) growth rate at 6.5% significantly lower than the growth rate of 7.1% last year.</p>.<p>This is the slowest pace of growth in the country's economy in the last four years.</p>.<p>According to the first advance estimates released by the Central Statistical Office, agriculture, the mainstay of the country's economy, is expected to grow at 2.1% this year. This is less than half of the last year's growth rate of 4.9%.</p>.<p>Similarly, manufacturing, the fulcrum of 'Make in India' initiative too is expected to decelerate substantially from the previous year. The growth in the manufacturing sector is expected to be at 4.6% this year as against 7.9% in 2016-17.</p>.<p>The construction sector is expected to grow at 3.6% in 2017-18 from 7.1% last year. The impact of the construction sector is reflected in the deceleration and recent decline in steel and cement production.</p>.<p>The per capita income of Indian people is expected to slow down at 8.3% this year as against 9.7% last year. The data showed per capita income is expected to be Rs 1,11,782 in 2017-18. Per capita income is a measure of people's living standard.</p>.<p>The growth in financial, real estate and professional services sector is, however, expected to be better than last year at 7.3%. Last year this sector had growth at 5.7%.</p>.<p>The advance estimates have, however, been compiled on the basis of actual data of the last seven months (April-October) in the fiscal 2017-18 and extrapolated for the next five months (November-March) on the basis of that.</p>.<p>Since the initial seven months were weighed down by demonetisation and GST hiccups, Chief Statistician T C A Anant said he was hopeful of a better recovery in the third (Oct-Dec) and the fourth (Jan-March) quarters, the actual data for which would be released in February and May respectively. Anant said CSO's projections for the first advance estimates were therefore conservative.</p>.<p>A series of high-frequency data such as manufacturing PMI, vehicle sales, core sector growth released in the course of last two weeks have also pointed towards a growth recovery in the economy</p>.<p>The usefulness of advance estimates is that they help the finance ministry in making Budget projections for the next financial year.</p>
<p>India's economy is set for a slowdown in the financial year ending March 31 with the government pegging the gross domestic product (GDP) growth rate at 6.5% significantly lower than the growth rate of 7.1% last year.</p>.<p>This is the slowest pace of growth in the country's economy in the last four years.</p>.<p>According to the first advance estimates released by the Central Statistical Office, agriculture, the mainstay of the country's economy, is expected to grow at 2.1% this year. This is less than half of the last year's growth rate of 4.9%.</p>.<p>Similarly, manufacturing, the fulcrum of 'Make in India' initiative too is expected to decelerate substantially from the previous year. The growth in the manufacturing sector is expected to be at 4.6% this year as against 7.9% in 2016-17.</p>.<p>The construction sector is expected to grow at 3.6% in 2017-18 from 7.1% last year. The impact of the construction sector is reflected in the deceleration and recent decline in steel and cement production.</p>.<p>The per capita income of Indian people is expected to slow down at 8.3% this year as against 9.7% last year. The data showed per capita income is expected to be Rs 1,11,782 in 2017-18. Per capita income is a measure of people's living standard.</p>.<p>The growth in financial, real estate and professional services sector is, however, expected to be better than last year at 7.3%. Last year this sector had growth at 5.7%.</p>.<p>The advance estimates have, however, been compiled on the basis of actual data of the last seven months (April-October) in the fiscal 2017-18 and extrapolated for the next five months (November-March) on the basis of that.</p>.<p>Since the initial seven months were weighed down by demonetisation and GST hiccups, Chief Statistician T C A Anant said he was hopeful of a better recovery in the third (Oct-Dec) and the fourth (Jan-March) quarters, the actual data for which would be released in February and May respectively. Anant said CSO's projections for the first advance estimates were therefore conservative.</p>.<p>A series of high-frequency data such as manufacturing PMI, vehicle sales, core sector growth released in the course of last two weeks have also pointed towards a growth recovery in the economy</p>.<p>The usefulness of advance estimates is that they help the finance ministry in making Budget projections for the next financial year.</p>
