Date
30 May 2017
Rising consumption and expanding services sector have helped India become the fastest-growing major economy in the world. Photo: Bloomberg
Rising consumption and expanding services sector have helped India become the fastest-growing major economy in the world. Photo: Bloomberg

India’s GDP expands 7.4% in third quarter, outpacing China

India’s economy grew at a faster-than-expected pace of 7.4 percent in the third quarter, after a 7 percent year-on-year expansion in the preceding three months, according to data released Monday.

It marks confirmation that India is now the fastest-growing economy in the so-called BRIC bloc, outpacing key rival China.

China’s gross domestic product grew 6.9 percent in the three months to September from a year earlier, while that of Russia contracted 4.1 percent and Brazil is forecast to shrink 4.2 percent, Bloomberg News noted.

The positive GDP data will help Reserve Bank of India Governor Raghuram Rajan to hold interest rates at current levels when the central bank’s monetary policy committee meets on Tuesday.

It also offers respite to Prime Minister Narendra Modi, who is struggling to push key economic bills through parliament, the report noted.

India’s stocks and currency have been among Asia’s worst performers over the past month as investors became concerned about slow pace of reforms.

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