The country’s GDP rose by 7.9% in the final quarter of the last fiscal year and 7.6% for the whole of that fiscal year. Active consumer spending propelled growth in India’s economy to 7.6%. The latest yearly growth reading matched the forecast issued by the Central Statistical Office in February. Year-over-year output growth in the January-through-March period was 7.9%, a significant step up from the 7.2% expansion recorded in the previous quarter.
Growth Rate of Different Sectors
The sectors that registered growth of more than 7% during the year were; financial, real estate and professional services (10.3%), manufacturing (9.3%), trade, hotels, transport, communication and services related to broadcasting (9%), and mining and quarrying (7.4%). Agriculture, forestry and fishing grew by 1.2% and construction by 3.9%. Electricity, gas, water supply and other utility services posted growth of 6.6%, as did the public administration, defence and other services sector. Also Q4 GDP growth powers Indian economy to $2 trillion.
The forecast of a good monsoon, due to make landfall on 7 June, together with the implementation of the Seventh Pay Commission’s recommendations on hikes for government employees (with sizeable arrears) will only further boost consumption and demand, which will be a catalyst for Indian economic growth.
Prime Minister Narendra Modi is due to travel to Washington on June 7-8 where he will meet heads of top U.S. companies. Having swept to power two years ago promising to revitalize Asia’s third-largest economy, Modi has boosted spending on defense and infrastructure, while consumer demand has risen thanks to lower interest rates. Meanwhile, India’s growth has overtaken that of fellow Asian giant China, which grew 6.7 percent in the March quarter – the slowest in the world’s second largest economy in seven years.