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Taking the pride back, India took the title of the fastest growing economy from China with the growth rate of 7.2 per cent in December (Q3) in comparison to the 6.8 per cent growth of China. The growth was primarily due to a major rise in manufacturing and spending.
With the country under the impact of demonetization and the Goods and Service Tax (GST) in the previous year the declared growth rate has become a breather for the nation.
The data has uplifted the spirits of the Modi government since the PNB scam had led to nationwide accusations on the government for mounting bad loans and for the 1.77 billion fraud; the biggest fraud in the banking history.
The growth has appeared to be greater than what the country had expected since the growth rate in the April-June quarter was at a three year low of 5.7% due to the major changes in the nation due to the residual effect of demonetization and GST implementation.
Though in July-September Quarter the growth rate revised to 6.5 per cent annually, a faster than expected recovery.
It is being highly expected that the growth rate will accelerate to faster pace in the coming months. With the increased growth rate the FFY18 GDP growth estimate has been revised from 6.5% to 6.6%.
The core sector has performed well if compared on MoM basis for the month of Janaury.
• The electricity output is up by 8.2% as compared to the previous figure of 4.4%.
• Cement output is at 20.7% v/s 18.8%.
• The steel output has been at 3.7% with the comparison against 2.5%
• Petro Refinery Products output has shown vital growth, it is u by 11% against 6.6%.
• Crude Oil Output is at 3.2% v/s 2.1%.
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But not all core sector output has shown growth
• Fertilizers output is down by 1.6% as compared to 3%.
• Natural Gas output has fallen to 1% from 1.2%.
The International Monetary fund has estimated the growth rate of 7.4% for India in 2018 and a recent update approximates 7.8% growth rate in 2019.