New Delhi: There is some good news for the Narendra Modi led government at the Centre as it celebrates two years of storming to power in the promise of change and economic reform.
While policies pending Parliament’s approval have bogged down claims, this set of news will surely lift their moods. Fresh data revealed today show that India’s Gross Domestic Product (GDP) grew by 7.9 per cent in the quarter ending March 2016, up from the 7.2 per cent clocked during the quarter ending December 2015.
The figure also beats the estimates of 7.5 per cent GDP growth pegged for the Indian economy. Significantly, the figure also solodifies India’s standing as the world’s fastest growing economy.
India maintained its lead over China, the world's second largest economy, where GDP growth slowed to a seven-year low of 6.7 per cent between January and March 2016.
On an annual basis, the Indian economy expanded by 7.6 per cent in 2015-16 to log the fastest growth among larger countries, while outpacing China, official data showed. This was also the fastest growth for India in five years.
The higher GDP growth was primarily on account of higher farm output, rise in mining activity and strong progress in electricity generation.
As per data on national income released by the Central Statistics Office, the country's GDP in actual numbers and in real terms was Rs113.50 lakh crore in 2015-16, against Rs105.52 lakh crore in the year before, showing a growth of 7.6 per cent.
The farm sector grew by 2.3 per cent from a year ago compared with a 1 percent contraction in the December quarter. "The upward revision is on account of use of third advance estimates of crop production released by the Ministry of Agriculture," the CSO statement said.
Mining grew 8.6 per cent in the March quarter, up from 7.1 per cent in the previous quarter. Electricity, water and gas production growth jumped to 9.3 per cent from 5.6 per cent in the December quarter.
Based on the Reserve Bank of India's reference exchange rate of Rs67.20 to a dollar as on Tuesday, the country's gross domestic output was valued at $1.69 trillion.
As per the latest data, the growth for the first four quarters of fiscal 2015-16, starting with the April-June period was 7.5 per cent, 7.6 per cent, 7.2 per cent and 7.9 per cent, respectively.
On an annual basis, India had grown by 7.2 per cent in 2014-15, 6.6 per cent in the year before and 5.6 per cent in 2012-13.
Sectorwise, those which registered growth of over 7 per cent are 'financial, real estate and professional services' (10.3 per cent), manufacturing (9.3 per cent), ‘trade, hotels, transport, communication and services related to broadcasting’ (9 per cent), and ‘mining and quarrying’ (7.4 per cent).
In the case of China, the growth rate was lower at 6.8 per cent in the last quarter of calendar year 2015 and 6.7 per cent during the first quarter of this year -- the slowest for the Asian giant since 2009.
In an assessment earlier this year, both the International Monetary Fund (IMF) and the World Bank had said India's growth in 2015-16 will outpace that of China, and expand even faster during the current fiscal.
Reviewing major developments during the fiscal, the Economic Survey for 2015-16 had said in February that the country's GDP growth at constant prices was projected to rise to 7.6 per cent in 2015-16 from 7.2 per cent in 2014-15.
Among the other assessments, IMF had said in May that India remained the fastest-growing large economy with GDP expected to increase by 7.5 per cent in 2015-2016, while the World Bank had projected the growth at 7.3 per cent.
The Reserve Bank of India's assessment was 7.4 per cent.
(With agencies)
