India on Tuesday cemented its pole position as the world's
fastest-growing major economy, with March 2016 quarter GDP (gross domestic
factor) growth accelerating to 7.9 % versus a revised 7.2 % in December 2015.
The latest data is much better than consensus estimates of 7.5% growth in Q4 and coincides with Prime Minister Narendra Modi's government completing two years in office
For 2015-16 fiscal year, GDP growth accelerated to 7.6% as compared to 7.2 % in 2014-15. Though India ended FY16 on a positive note, economists and market analysts are cautious about the current year (FY17) numbers.
According to the Economic Survey, GDP growth is expected to be flat in the current fiscal year.
India's growth has been held back by back-to-back droughts that have hit the farm sector, which employs nearly 50 % of the population and contributes over 15 % to the GDP.
Simultaneously, a slowdown in the global economy has hurt exports, which have contracted for 17 straight months, raising worries for the government.
Finance Minister Arun Jaitley has maintained that India's GDP growth is "much less" than its potential.
The latest data is much better than consensus estimates of 7.5% growth in Q4 and coincides with Prime Minister Narendra Modi's government completing two years in office
For 2015-16 fiscal year, GDP growth accelerated to 7.6% as compared to 7.2 % in 2014-15. Though India ended FY16 on a positive note, economists and market analysts are cautious about the current year (FY17) numbers.
According to the Economic Survey, GDP growth is expected to be flat in the current fiscal year.
India's growth has been held back by back-to-back droughts that have hit the farm sector, which employs nearly 50 % of the population and contributes over 15 % to the GDP.
Simultaneously, a slowdown in the global economy has hurt exports, which have contracted for 17 straight months, raising worries for the government.
Finance Minister Arun Jaitley has maintained that India's GDP growth is "much less" than its potential.
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