Indian economy has grown rapidly over the past year, Jakarta – The Indian economy grew at its fastest pace last year in the April-June quarter. India’s accelerating economic growth is supported by service activity and strong demand.

However, drier than usual rainy season conditions could dampen the rate of economic growth in the future.

India’s gross domestic product (GDP) grew 7.8% year-on-year during the quarter, compared to 6.1% growth recorded in the three months ending at the end of March. This is the highest figure since the June 2022 quarter, when growth reached 13.1%.

India remains one of the fastest growing economies, especially as China’s post-pandemic recovery has slowed.

India’s chief economic advisor V. Anantha Nageswaran maintained his growth forecast at 6.5% for the full year. “Growth prospects appear bright, although external factors pose downside risks,” Nageswaran said.

Thamashi De Silva of Capital Economics said India’s GDP data was strong despite the Reserve Bank of India’s policy tightening. The RBI has increased interest rates by 2.5 percentage points since May 2022.

In the April-June quarter, private consumption, which accounts for nearly 60% of India’s economy, grew around 6% year-on-year, compared to 2.8% in the March quarter, while manufacturing manufacturing increased by 4.7%, compared to 4.5%. during the previous three months.

However, growth in capital formation, an indicator of investment, slowed to around 8% year-on-year, compared with 8.9% in the previous three months.

“The impetus was given by the services sector where trade, transport, finance and real estate grew by 9.2% and 12.1% on a high base growth rate,” he said. said Madan Sabnavis, economist at Bank of Baroda.

Cheryl Tenny

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