• Saturday, Apr 01, 2023
  • Last Update : 10:24 am

India's economic growth surges to 8.2%

  • Published at 04:20 pm August 31st, 2018
India economic growth

Central Statistics Office figures showed GDP growth for April to June in Asia's third-biggest economy improved from 7.7% in the previous quarter

India's economy grew at a stunning 8.2% in the first quarter of the 2018-19 financial year, official data showed Friday, as it charts a course to overtake Britain as the world's fifth-largest economy.

Central Statistics Office figures showed GDP growth for April to June in Asia's third-biggest economy improved from 7.7% in the previous quarter.

The latest figures, which mark India's highest growth rate in eight quarters, shot up from 5.6 percent for the same period last year and reinforces the nation's status as one of the world's fastest growing economies.

"The Q1 figures were higher than we expected. Exports, infrastructure and industry activity have picked up pace," Sujan Hajra, chief economist at Anand Rathi Securities, said.

India became the globe's sixth-biggest economy in 2017, pushing France into seventh place, according to figures released by the World Bank last month.

India's gross domestic product (GDP) was $2.597 trillion at the end of 2017, against $2.582 trillion for France, it said.

The United States is the world's top economy, followed by China, Japan and Germany.

Britain is currently the world's fifth-biggest economy with a GDP of $2.622 trillion last year.

"Next year we are likely to overtake Britain," Indian Finance Minister Arun Jaitley said Thursday.

He predicted that the Asian giant, with its population of 1.25 billion people, would become one of the world's top three economies around 2030.

India's GDP expansion is back on track after a rocky start to economic reforms implemented by Prime Minister Narendra Modi.

Quarterly growth fell as low as 5.6% in mid-2017 as the economy reeled from a shock cash ban that scrapped 86% of currency notes.

Business and customers were also wary of a new nationwide goods and services tax, introduced last year, which replaced a myriad of state and national taxes.

The International Monetary Fund has forecast GDP growth for the current fiscal year at 7.3%, rising to 7.5% the following year.

This compares to the world's expected average growth of 3.9%.

India is a massive importer of oil, however, and analysts say high crude prices and a tumbling rupee threaten to derail growth.

The Indian currency breached 71 against the dollar for the first time ever Friday. It started the year at 63.67.

The slump is widening India's current account deficit, a measure of when the value of imports exceeds that of exports, threatening the country's balance of payments.

Friday's 8.2% figure was above the median estimate of a survey of economists by Bloomberg, which had predicted of 7.6%.

Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail