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India’s GDP grew by 7.2 percent in the year to March, official figures showed Wednesday, boosted by services and consumption, putting it among the world’s fastest-expanding major economies.
The South Asian nation is the world’s fifth-largest economy, and recently surpassed China to become the most populous country.
Its growth has rebounded since the pandemic -- the economy rocketed 9.1 percent in the 2021-22 financial year.
But like other countries, it has been buffeted by global headwinds including tightening global financial conditions, the war in Ukraine and geopolitical tensions.
India imports more than 80 percent of its crude, with Russia’s invasion of Ukraine driving up oil costs.
But its economy grew by 6.1 percent in the fourth fiscal quarter from January to March compared with the same period last year, according to National Statistical Office data.
In the same period, China’s economy expanded 4.5 percent year-on-year according to its National Bureau of Statistics, while Washington’s Commerce Department said the United States grew by an anaemic 1.1 percent.
China is rebounding after the end of zero-Covid measures that battered business and supply chains, but is bedevilled by a host of other headaches.
Meanwhile the United States is battling persistently elevated inflation, Germany is in a technical recession amid an energy crisis triggered by the Ukraine war, and Japan expanded by just 0.4 per cent in the first quarter.
In India, growth in financial, real estate and other services strengthened from the previous year, while the manufacturing sector expanded at a much slower pace.
The quarterly and annual figures were slightly above market expectations of around 5.5 per cent for the quarter and 7.0 per cent for the 2022-23 financial year.
The robust growth is expected to bolster Prime Minister Narendra Modi’s economic credentials ahead of 2024 general elections, where he is expected to lead his party to a third term in office.
Analysts said government spending and domestic consumption have also helped India’s economy remain robust.
The World Bank’s India country director, Auguste Tano Kouame, said in April that the economy “continues to show strong resilience to external shocks”.
“Notwithstanding external pressures, India’s service exports have continued to increase, and the current-account deficit is narrowing.”
