India's Economy Powers Ahead with Strong GDP Growth

Chief Economic Adviser V Anantha Nageswaran expressed optimism regarding India’s economic growth, projecting a 7% growth rate for the current fiscal year. This follows a robust 8.2% GDP increase in the second quarter. The GDP is expected to surpass USD 4 trillion, fueled by strong factory production and service sector performance.

In a commentary filled with optimism, Chief Economic Adviser V Anantha Nageswaran projected an impressive 7% growth rate for India's economy in the current fiscal year. This comes on the back of a robust 8.2% GDP increase in the second quarter, marking a high point in six quarters.

According to Nageswaran, the Indian economy is on track to cross the USD 4 trillion mark by the end of the fiscal year, leveraging strong industrial output and a booming services sector. The recorded end-March GDP stood at USD 3.9 trillion, with substantial first-half growth bolstering confidence in achieving or surpassing the 7% mark.

The second quarter's growth was stimulated by increased factory production, anticipating a boost in consumption from the GST rate cut. The services sector also contributed significantly, displaying double-digit expansion. Nageswaran highlighted resilient rural and strengthening urban demand, indicating a promising start to the third fiscal quarter.

(With inputs from agencies.)