India's GDP grows 7.4% in Q2; outpaces China

01 Dec '15

2 min read

India's economy picked up pace in the second quarter of the current fiscal, comfortably outpacing China. According to official data, the Indian economy grew by 7.4 per cent in July-September against China's 6.9 per cent for the same quarter to become the fastest growing major economy.

While India's GDP expanded 7.4 per cent in Q2 from 7 per cent in the previous quarter, growth rate of eight core infrastructure industries slowed to 3.2 per cent in October. But the growth rate for the latest quarter was far below 8.4 per cent recorded in the July-September quarter of the previous fiscal.

Amid global headwinds, Chinese economy has slowed down while other emerging economies of Brazil to Russia are contracting. China expanded by 6.9 per cent growth in July-September while Russia contracted by 4.1 per cent and Brazil is forecast to shrink by 4.2 per cent.

The high growth was driven by a robust 9.3 per cent rise in gross value added (GVA) in the manufacturing sector. Financial services rose 9.7 per cent. Electricity and gas production grew 6.7 per cent while the construction sector expanded 2.6 per cent.

Despite a poor monsoon, agricultural sector did better than expected with a 2.2 per cent rise in GVA against 2.1 year-on-year. (SH)

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