The improved performance would be a big boost for the Narendra Modi government as it comes amid a debate over its economic record versus that of the previous Manmohan Singh administration after back-series data released recently showed that the GDP growth rate had crossed 10 per cent mark during UPA rule
The Indian Economy surged ahead at a rate of 8.2 per cent during the period from April to June, topping the pace of the previous quarter and more than expectations. This is the highest growth in over two years and strongest since the first quarter of 2016.
India moved to the sixth rank in the world in 2017 and now is forecasted to take the third place by 2030, according to a report by HSBC Holdings.
With the 8.2 per cent rate, India has retained its status of the world’s fastest growing economy as China had reported GDP growth of 6.8 per cent for the quarter ending June.
China’s growth rate is 6.8 percent for the period Apr to June 2018 and in the period January to March quarter the rate was 7.7 per cent. The economy had growth of 5.6 per cent in April-June quarter of 2017.
Even with the above growth rate China is set to edge out the US as they retain the top two spots in 2030 at USD 26 trillion and USD 25.2 trillion, respectively, with India taking the third spot at USD 5.9 trillion, according to HSBC estimates.
The World giant India was seen as “among the most striking” gainers in the bank’s long-term rankings, leap-frogging Germany and Japan largely on account of the economy’s rapid growth and a rising working-age population that’s the envy of an ageing developed world.
The improved performance would be a big boost for the Narendra Modi government as it comes amid a debate over its economic record versus that of the previous Manmohan Singh administration after back-series data released recently showed that the GDP growth rate had crossed 10 per cent mark during UPA rule.
The Indian government changed the base year for GDP calculation from 2004-05 to 2011-12, a move that had generated a lot of controversy.
The results are also much better than projections by economists, who had pegged the first quarter growth to be in the 7.5 to 7.6 per cent range. This is the second straight quarter that GDP rate has beaten expectations.
Sectors that registered a growth of over 7 per cent include manufacturing, electricity, gas, water supply and other utility services, construction and public administration, defence and other services.
