India has once again posted growth of more than 7%, securing its standing as the world’s fastest growing major economy.
Official data released Monday showed GDP grew at an annual rate of 7.3% in last three months of 2015, a tad weaker than the previous quarter but in line with forecasts.
The country’s manufacturing sector is booming, and the Indian government is forecasting GDP growth of 7.6% for the current financial year ending March 31 — a much faster pace than China will deliver.
India is getting a big boost from cheap oil but will have to enact significant reforms to sustain growth at this pace. Many analysts are now concerned that Prime Minister Narendra Modi may not be able to push his policy agenda through a fractured legislature.
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