India records 7.8 per cent GDP growth amid global trade tensions

KOCHI: India's gross domestic product (GDP) grew by 7.8 per cent in the first quarter of the current fiscal year, overcoming global trade tensions. This is the highest growth in the last 15 months.

The US, which earlier taunted India as a dead economy, managed to grow its GDP by only 3.3 per cent. China's growth was 5.2 per cent. India is becoming the fastest-growing economy in the world, overcoming US President Trump’s devious attempts to cripple it by imposing a 50 per cent import tariff.

The growth in April-June was higher than the Reserve Bank's forecast of 6.5 per cent. The services sector grew by 9.3 per cent. Industry grew by 7.7 per cent and construction by 7.6 per cent. Agricultural production rose by 3.7 per cent. The mining sector declined by 3.1 per cent.

Domestic market holds the fort:

1. A large domestic market and high purchasing power of the middle class proved beneficial

2. Consumption is increasing as inflation has come down and agricultural production has improved

3. Industrial investment has increased as the key interest rate was cut by one percentage point

The rupee has hit a record low on concerns over Trump's 50 per cent tariff threat. The rupee lost 65 paise to 88.21 against the dollar on Friday.