India remains world's fastest-growing major economy as GDP grows by 7.6%

Beating all the expectations, India retained the tag of the world’s fastest-growing major economy as its Gross domestic product (GDP) grew by 7.6 per cent in the July-September quarter, helped by government spending and manufacturing.

The GDP growth of 7.6 per cent topped most estimates, including 6.5 per cent projected by the Reserve Bank of India (RBI).

The growth compares to 6.2 per cent in the same quarter last year and 7.8 per cent expansion in the preceding quarter, official data released on Thursday showed.

India’s GDP growth beat China’s 4.9 per cent rise in July-September, while the Western economies are getting crushed under high-interest rates and energy prices.

The surprise GDP growth, which indicates that the economic recovery is on track despite the adverse geopolitical situation, was primarily driven by an acceleration in the manufacturing sector, which surged to a nine-quarter high of 13.9 per cent from 4.7 per cent in April-June. Private consumption and agriculture demand, however, remained muted.

Prime Minister Narendra Modi termed the better-than-expected growth as a display of resilience and strength of the Indian economy.