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India becomes the fastest growing economy,surpassing even China

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Published on 1 Jun 2016 7:51 AM GMT

India becomes the fastest growing economy,surpassing even China
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New Delhi: Mera Desh Badal Raha Hai, Aage Badh Raha Hai. The latest report by the Central Statistical Organisation has given the Modi government a reason to sing this theme song and celebrate the completion of two years in office more enthusiatically.

The report pointed out that India's Gross Domestic Product (GDP) rose by zero point six per cent in January- March quarter, creating a world-record.

The figures released by the organisation revealed that GDP stood at 7.9 per cent as against 7.3 per cent in the previous quarter, an achievement no other country has made.

Here are the top highlights that contributed to the growth of Indian economy:

  • India’s GDP grew at 7.6 per cent in 2015-16, powered by revival in farm output, improvement in electricity generation and mining production.
  • The strong 7.9 per cent growth in the fourth quarter comes at a time when China has reported its slowest growth till date at 6.7 per cent.

Economic growth estimations in last financial year:

  • Economic growth was estimated at 7.2 per cent last fiscal .
  • The growth numbers for the last year have played a crucial role in reinforcing India’s position as the world’s fastest-growing economy.
  • The Reserve Bank of India (RBI), in its April monetary policy review had stated that factors such as slow investment recovery amid balance sheet adjustments of companies, weak revival of private investment demand and rapid external demand would influence the growth outlook for 2015-16.
  • The central bank has already cut its repo-rate by 150 basis points since January 2015, reducing it to the lowest level in five years.

According to data released by Central Statistics Office (CSO):

  • The farm sector grew by 2.3 per cent from the previous year.
  • Mining stood at 8.6 per cent from 7.1 in the March quarter
  • Electricity, water and gas production growth surged to 9.3 per cent from 5.6 per cent in December quarter.
  • The growth of in the “agriculture, forestry and fishing” sector was revised upwards to 1.2 per cent in 2015-16. It was estimated at 1.1 percent in advance estimates for the same period.
  • The manufacturing sector’s growth was revised downward to 9.3 per cent as against the growth rate of 9.5 per cent estimated earlier. The fall is due to lower rate of industrial output than the estimation.
  • Growth in trade, hotels, transport, communication services has been revised downward to 9 per cent against previously anticipated 9.5 per cent.
  • Financial, insurance and real estate sectors grew at 10.3 per cent. This growth rate was as much as estimated.

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