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India's Economy Surges 7.8% Amid Global Woes
1 Sep
Summary
- India's economy grew 7.8% in the June quarter, exceeding forecasts.
- Strong investments and robust manufacturing/services fueled growth.
- Growth outpaced the previous quarter and the same period last year.
India's economy expanded by a better-than-expected 7.8% in the June quarter, defying concerns over global economic headwinds. This growth rate exceeded forecasts from economic polls and the Reserve Bank of India, though it was slower than the preceding quarter's 8.6%.
The expansion was significantly boosted by strong investment activity, which grew 11.9%, and a robust performance in the manufacturing and services sectors. Manufacturing GVA increased by 9.2%, while services grew by 10%, demonstrating continued economic resilience.
Prime Minister Narendra Modi hailed the achievement as a "Herculean feat," attributing the success to the collective strength of the people and agile economic management. Finance Minister Nirmala Sitharaman also credited the populace and the government's reformist policies for the positive outcomes.
Economists anticipate India's economy to grow around 7% in the current fiscal year, marking a fourth consecutive year of expansion exceeding that benchmark. Revisions to growth estimates for the current and upcoming fiscal years have also been slightly increased.
