India's Q1 GDP growth at 7%, growth tops that of China

India’s Gross Domestic Product (GDP), which was seen at 7.5%, grew at 7% in the first quarter of the current fiscal.

As the method has changed, India's growth topped that of China in the first quarter this year.

However, India’s manufacturing growth slowed down to 7.2% versus 8.4% YoY and agricultural growth also slowed down to 1.9% versus 2.6% YoY.
The government said that the GDP at constant (2011-12) prices in Q1 of 2015-16 is estimated at Rs 27.13 lakh crore, as against Rs 25.35 lakh crore in Q1 of 2014-15, showing a growth rate of 7.0%.

“Quarterly GVA at Basic Price at constant (2011-2012) prices for Q1 of 2015-16 is estimated at Rs 25.80 lakh crore, as against Rs 24.10 lakh crore in Q1 of 2014-15, showing a growth rate of 7.1 per cent over the corresponding quarter of previous year," the government release said.

The country’s fiscal deficit was Rs 3.85 lakh crore ($57.93 billion) during April-July, or 69.3% of the full-year target. As per the data, the deficit was 61.2% during the same period a year ago.

FDI are up 30% from a year earlier.

Net tax receipts were at Rs 1.54 lakh crore in the first four months of the current fiscal year that ends in March 2016.

India has a good opportunity to get more investments as it has a large domestic market and cheap workforce.

Meanwhile, India has pitched for rating upgrade by Standard and Poor's citing strong macroeconomic indicators, low inflation and improvement in fiscal as well as current account deficits.

S&P has BBB- rating on India with stable outlook.