India on Tuesday cemented its pole position as the world's fastest-growing major economy, with March quarter GDP (gross domestic factor) growth accelerating to 7.9 per cent versus a revised 7.2 per cent in December 2015.
The latest data is much better than consensus estimates of 7.5 per cent growth in Q4 and coincides with Prime Minister Narendra Modi's government completing two years in office.
For 2015-16 fiscal year, GDP growth accelerated to 7.6 per cent as compared to 7.2 per cent in 2014-15. Though India ended FY16 on a positive note, economists and market analysts are cautious about the current year (FY17) numbers.
According to the Economic Survey, GDP growth is expected to be flat in the current fiscal year.
India's growth has been held back by back-to-back droughts that have hit the farm sector, which employs nearly 50 per cent of the population and contributes over 15 per cent to the GDP.
Simultaneously, a slowdown in the global economy has hurt exports, which have contracted for 17 straight months, raising worries for the government.
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