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India Accelerates GDP to 7.7% in Q4, Retains Fastest Growing Economy Position

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Published on : Jun 01, 2018

According to the news division of a reputed Indian television media company, the title ‘fastest growing economy of the world’ was retained by India in Q4 2017-18 while moving well ahead of China. In nearly seven quarters, the country showed fastest growth as its GDP hurried to a 7.7% in the Jan-Mar quarter. Overall growth of the economy was contributed by the construction, manufacturing, and agriculture industries with an 11.5%, a 9.1%, and a 4.5% in that order. Another news agency’s forecast of a 7.3% annual growth made in a poll was trumped by the third largest economy of Asia’s growth revealed by the Ministry of Statistics.

Faster Growth in Latest Quarter might Strengthen Expectations for Rate Hike by RBI

In Q3 2017-18, India exhibited a revised 7.0% GDP. However, the GDP lowered to a 6.7% for the full year. In the previous fiscal year, it had touched a 7.1%. Nevertheless, the latest GDP percentage has beaten all expectations, and as said by HDFC Bank’s senior economist, Tushar Arora, it should rest a whole lot of concerns. Moreover, it is a good sign to see the pickup in investment activity, continued Arora, as it seems like India has passed the teething GST implementation troubles.

With a push from private investment pickup and a normal monsoon, India’s economy is expected by most economists to reach beyond a 7.0% this fiscal year. Although it has reduced its GDP growth forecast for the country looking at its tighter financial conditions and expensive oil prices, a popular financial services company still anticipates the percentage to rise by a 7.3%.