A recently released data by the Central Statistics Office shows that India’s economy grew by 7.3% during 2014-15 failing to overtake China as the world’s fastest growing major economy.
- Capital formation continued to be lower at 28.7% of GDP against 29.7% during 2013-14.
- Gross fixed capital formation – a barometer for investments – slowed for the second straight year.
- The manufacturing sector grew by 7.1% against the 2013-14 growth of 5.3%.
- The prime drivers of the growth were the significantly stronger performance of ‘manufacturing’, ‘electricity, gas, water supply and other utility services’ and the ‘financial, real estate and professional services’.
- Almost all sectors of the economy picked up during the year. The exceptions were the sectors of ‘agriculture, forestry and fishing’, ‘mining and quarrying’ and ‘public administration defence and other services’ that’s linked to government spending.
The International Monetary Fund has projected that India will outpace China during the current fiscal year.
Sources: The Hindu.