India overtakes China in economic growth becomes world's fastest growing economy; Q4 GDP growth at 7.5%
- India’s output growth accelerated to 7.5% last quarter, putting it ahead of China as the world’s fastest-growing large economy.China’s growth last quarter was 7%.
- The economic growth line with the initial forecast and marginally higher than 6.9% recorded in the previous year,the growth figure was higher than analysts had been expecting.
- The economic growth improved from 6.6% in the third quarter (October-December) of the financial year 2014-15. The GDP grew by 7.3%, up from 6.9% a year ago mainly due to improvement in services and manufacturing sectors
- Finance Minister Arun Jaitley Said that the fourth quarter GDP data"gives us a broad idea of how the Indian economy is moving. It is absolutely clear that the economy is in a recovery mode".
- Investment-friendly policies initiated by Prime Minister Narendra Modi kept the Indian economy recovery path however not all sectors have benifited equally
Which sectors have shown growth
- Services such as finance, insurance and real estate continued to perform strongly, growing by 11.5% while Manufacturing activity had a growth of 7.1%
- Services sector including trade, hotels, transport and communications had a growth rate of 14.1%.
- Finance Minister Arun Jaitley said "The performance of manufacturing and services indicates that "we have a potential to grow at 8-9% and beyond"
- The fourth quarter GDP growth rate of 7.5% was better than China's 7.4% making India the fastest growing economy in the world.
- Finance Secretary Rajiv Mehrishi said improvement in the manufacturing sector growth shows that jobs are being created.
Sectors that have not shown much positive growth
- The output of mining and quarrying sector decelerated to 2.3% in the fourth quarter of the last fiscal as compared to a growth of 11.5% during the same period in 2013-14.
- Due to below-average rain the crop was was hurted last year so it had only a growth of 0.2%.
Central StatisticS Organisation (CSO) data :-
The GDP for the first quarter was revised to 6.7%, from 6.5% for Q2 to 8.4%, from 8.2 and for Q3 to 6.6% from 7.5%
Gross Value Added (GVA), which is a new concept introduced by CSO to measure economic activity, rose by 7.2% in 2014-15, compared to 6.6% in the previous fiscal.CSO further said that per capita income at current prices during 2014-15 rose by 9.2% to Rs 87,748 as against Rs 80,388 in the previous fiscal. It was Rs 64,316 in 2011-12 and Rs 71,593 in 2012-13.
India’s $2 trillion economy still contributes far less to world growth than its northern neighbor, whose GDP is $10 trillion.