New Delhi: The Indian economy grew at 7.2 per cent in
the October-December quarter, government data showed on Wednesday,
beating expectations by riding on higher government spending and a
pickup in the manufacturing sector.
The data is also a booster shot for Prime Minister Narendra Modi, who
faces mounting criticism over bad loans and a Rs 12,700 crore fraud at
state-run Punjab National Bank, the biggest fraud in the country’s
banking history.
The latest data shows that the economy in this quarter grew fastest in
the fiscal year 2017-18, signaling a revival after emerging from the
negative effects of the twin decisions of demonetization and Goods and
Services Tax.
The GDP growth rate came in above expectation as a Reuters survey of 35 economists predicted the data to come at 6.9 per cent.
A 7.2 per cent growth rate also means that India has regained the status
of the fastest growing economy as it topped China's 6.8 per cent pace
for October-December. The last time India had a faster growth rate was
in the final three months of 2016.
A strong gross domestic product reading could lift domestic shares, and
boost the rupee, which has been Asia's second weakest currency this
year, losing about 1.6 percent against the dollar.
