The government's finances have shown improvement in July with fiscal deficit at 86.5 per cent of the Budget Estimate (BE), mainly on account of higher revenue collection, as per official data.
According to a report by the firm, the 8.2 per cent GDP growth for the April-June quarter of this year, though "encouraging", was largely owing to base effects.
CII President Rakesh Bharti Mittal noted that GST, reforms in Ease of Doing Business, FDI, labour, agriculture, and many other initiatives aimed at improving the overall investment climate.
According to the global financial services major, dissipating base effects, tighter financial conditions and limited fiscal headroom will come together to moderate growth this fiscal.
"Going forward, the base effect will not be so favourable. And when we reach Q3 and Q4, the rate of growth may decline and the annual growth rate may be more or less like last year's," he said on Twitter.
"India's GDP for the first quarter this year growing at 8.2 per cent in an otherwise environment of global turmoil represents the potential of New India," Jaitley said in a tweet.
Garg also expressed the hope that the country will meet its fiscal deficit target of 3.3 per cent and said both oil price hike and rupee depreciation are temporary.
The Q1 GDP growth, highest in last 15 quarters, cemented India's position as the fastest growing major economy, clocking higher expansion rate than China's 6.7 in the same quarter.
"This year, in terms of size, we have overtaken France. Next year we are likely to overtake Britain. Therefore, we will be the fifth largest (economy)," Jaitley said.
"Truth has triumphed. The back series calculation of GDP has proved that the best years of economic growth were the UPA years 2004-2014," Chidambaram said in a tweet.
The "Ficci Economic Outlook Survey" also said that several economists are of the opinion that the rupee is likely to remain under pressure during the financial year 2018-19.
As per the RBI, the growth would be in the range of 7.5-7.6 per cent in first half of the fiscal and 7.3-7.4 per cent in October-March 2018-19 period "with risks evenly balanced".
China's gross domestic product (GDP) grew 6.8 per cent year-on-year in the first half of 2018 to about 41.90 trillion yuan ($6 trillion)
With GDP of USD 19,390,604 million, United States has topped the list, followed by China with USD 12,237,700 million.
The prime minister further said that his government has taken steps in last four years to ease the process of doing business in India while maintaining macroeconomic indicators like inflation, current account deficit (CAD) and fiscal deficit within limits.
Observing that the Indian economy has grown at a healthy rate of 7.7 per cent in the fourth quarter of 2017-18, Modi said the challenge now is to take this growth rate to double digits, which requires more important measures.
The rate hike by RBI and the oil prices raise concerns over the sustainability of what was termed as a "cyclical, broad-based recovery", Nomura's chief India economist Sonal Varma said.
The Reserve Bank, in its second bi-monthly monetary policy review for the current fiscal, said that the sharp rise in petroleum product prices is likely to impact disposable incomes.
The economy grew at the highest rate since September quarter of FY17, ahead of the demonetisation drive that began in November 2016.
In its report published on Thursday, the UN World Economic Forum said that the GDP growth in India is expected to climb to 7.5 and 7.6 per cent in fiscal years 2017-18 and 2018-19 respectively.
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