A day after Moody’s downgraded its forecast for India’s growth in the current fiscal year to 7.3% from 7.5%, India’s Ministry of Statistics released its provisional growth estimates for the last quarter of 2017-18. And the results – which were above expectations – caused market prognosticators to rejoice and stock-markets to surge.
With a growth of 7.7% in the three months that ended 31 March, India recorded its highest growth rate in seven quarters and retained the title of the world’s fastest growing economy from China, which grew by 6.8% in the same period.
This also marked a significant rebound from the first quarter of fiscal 2018, when the growth rate plummeted to 5.7%. The strong growth was largely a combination of three factors – a pickup in manufacturing, construction and agriculture. Read More