India managed to retain its position as the world’s fastest growing economy for the January to March quarter. India’s Gross Domestic Product (GDP) accelerated to 7.7% in this March quarter. This is the fastest pace of growth in the last seven quarters.
Growth has been seen in the agriculture sector at 4.5% while the manufacturing sector has increased to 9.1% and construction sector to 11.5%. The growth in each sector resulted in the overgrowth of India’s GDP.
The Senior Economist at HDFC Bank Tushar Arora said, “Today’s GDP number is very comforting and should put a lot of concerns to rest. (It) Seems like we have moved beyond the teething troubles related to GST implementation. The pick up in investment activity (fixed capital formation) is also a good sign.”
The quick growth in the last quarter can attribute to a rate hike by the RBI this year.
Vice President and Economist at Elara Capital Garima Kapoor explained, “We expect RBI to revise its policy stance in June and follow it up with a hike of 25 bps in August policy.”
Many economists have stated India’s economy is like to gro more than 7% this year.
