New Delhi: The Indian economy grew the fastest in nine quarters, signalling that the worst is over. A sharp rebound in manufacturing and mining sectors in the April-June quarter helped the overall growth.
At 5.7 %, GDP growth in the first quarter was sharply higher than 4.6 % growth registered between January and March and ahead of Reuters estimate at 5.3%.
Manufacturing, which contributes 15% of the economy, expanded at an annual rate of 3.5% during the April-June quarter compared with a contraction of 1.2% a year ago. Mining sector grew 2.1% compared with a 3.9% annual fall a year earlier.
However, the annual farm output growth slowed to 3.8% in the quarter, from 4% a year ago.
The better-than-expected growth data comes at a time when economists have been pointing to several green shoots in the economy and will boost investor confidence.
Analysts attributed the rebound in growth to steps taken by the previous government to kick-start capital investments and spur consumer demand as well as the psychological boost provided by new Prime Minister Narendra Modi.
The Modi government’s opening up the defence and railways sectors for foreign investment did send the right signals. Online clearance for environmental submission has removed a major hurdle on new entrepreneurs’ path. Â
But India needs to grow at 8% to provide jobs for the 10 million people who are expected to join the workforce every year.
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