India regained its status as the world’s fastest growing major economy in the October-December quarter, surpassing China for the first time in a year as government spending, manufacturing, and services all picked up.
Ministry of Statistics data showed India’s economy grew 7.2 percent in the December quarter, beating China’s 6.8 percent, plus a forecast of 6.9 percent by analysts polled by a global news media.
In the same December quarter, annual growth in the manufacturing sector rose to 8.1 percent from 6.9 percent in the previous quarter, while financial and other services grew at 7.2 percent from 5.6 percent. Retail inflation eased marginally to 5.1 percent in January from a 17-month high of 5.2 percent in December.
Urjit Patel, governor of India’s central bank, the Reserve Bank of India, said the economic recovery was at a nascent stage and called for a cautious approach.
