Manufacturing sector saw robust growth as India's GDP grew faster than China, at 7.4%

While some world economies are suffering from a slowdown, India is experiencing a surge in its GDP. India's Gross Domestic Product (GDP) grew at 7.4% for the second quarter of the current financial year. GDP in the first quarter had grown at 7%. "GDP at constant (2011-12) prices in Q2 of 2015-16 is estimated at Rs 27.57 lakh crore, as against Rs 25.66 lakh crore in Q2 of 2014-15," said the government release.

Manufacturing sector experienced the most robust growth with a growth rate of 9.3% versus 7.9% YoY. Agricultural sector growth was reported at 2.2% versus 2.1% YoY.

"The growth in the 'agriculture, forestry and fishing', 'mining and quarrying', 'electricity, gas, water supply & other utility services, 'construction' and 'public administration, defence and other services' is estimated to be 2.2 per cent, 3.2 percent, 6.7 per cent, 2.6 per cent and 4.7 per cent, respectively, during this period," the release added.

Sharp falls in the cost of oil and gold imports are reducing the trade deficit and giving a net boost to economic activity.

Consumer inflation in India cooled to record lows earlier this year but crept back to a four-month high of 5.0 per cent in October.

(Image credits: Indiatimes)