Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period. Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well.
A Prasanna, Chief Economist at ICICI Securities Primary Dealership, said the house maintains its FY17 GVA estimate at 7.6 percent. Gross value added (GVA) was down to 7.3 percent from 7.4 percent year-on-year and 7.2 percent in fourth quarter FY16.
The FY17 GDP too should be closer to the GVA estimate, said Prassana. Gross domestic product (GDP) during the April-June FY17 slowed to 7.1 percent from 7.5 percent in the same quarter last year and 7.9 percent in the fourth quarter of FY16.
Agriculture, construction and mining proved to be major drags. According to Prasanna, going forward, as agriculture and consumption pick up, the private side of the economy should do well.
The agriculture sector growth for the first quarter dipped to 1.8 percent from 2.3 percent QoQ while construction too lagged with mere 1.5 percent growth versus 4.5 percent QoQ.
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