Indian economy grew at 5.7% during first quarter of fiscal 2015. Gross domestic product (GDP) growth stood at 4.7% in the fourth quarter of fiscal 2014. Quarterly GDP at factor cost at constant (2004-2005) prices for Q1 of 2014-15 is estimated at Rs 14.38 trillion, as against Rs 13.61 trillion in Q1 of 2013-14. Commenting on the growth, the finance ministry said, "GDP growth is showing early signs of recovery. We expect the economy to grow at 5.7-5.9% during the current FY and in 2-3 years' time reclaim the high growth rate of 7%." While on prices, the government said the headline WPI inflation after remaining persistent around 7-9% during 2011-13 is showing signs of moderation and has come down to 5.19% in July, 2014. Consumer Price Index has fallen from the levels of 8.6% in April, 2014 to 7.96% in July, 2014. "When the new Government came to power around three months ago, it faced various challenges on economic front. The economic growth was showing a downward trend, the inflation was alarmingly high, unemployment rate was worrisome and corruption was touching new heights. The new government took various steps for boosting growth, controlling inflation and curbing corruption among other measures. The Union Budget 2014 was its first path breaking effort to tackle all these issues upfront. Now all these efforts have started showing results," the ministry said in the statement.
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