Great news for India! It's economy grew at 7.5% between Jan-March 2015

In what can be seen as a clear sign of uptake in the Indian economy’s growth, the country’s Gross Domestic Product (GDP) grew at a rate of 7.5% in the last quarter of the financial year 2014-15. This is exactly in line with the advanced estimates made by the CSO.

The GDP growth for the entire FY15 now provisionally stands at 7.3%. The GDP growth rate for first quarter of FY15 was revised upwards to 6.7% versus an earlier estimate of 6.5%. The Q3 GDP growth was revised down to 6.6% versus 7.5% earlier. The Q2 GDP growth was revised to 8.4% versus earlier estimate of 8.2%.

"The real GDP or GDP at constant (2011-12) prices in the year 2014-15 is now estimated at Rs 106.44 lakh crore (as against Rs 106.57 lakh crore estimated earlier on 9th February, 2015), showing a growth rate of 7.3 per cent(as against 7.4 per cent estimated earlier) over the New Series/First Revised Estimates of GDP for the year 2013-14 of Rs 99.21 lakh crore, released on 30th January 2015," the press release said.
The per capita income at current prices during 2014-15 is estimated to have attained a level of Rs 87,748 as compared to the New Series/First Revised Estimates for the year 2013-14 of Rs 80,388 showing a rise of 9.2 per cent.

Meanwhile, the government and businesses are pushing for an interest rate cut next week. Government is worried that companies are not investing enough and that a period of low inflation may be short-lived.

The government's position reflects nagging doubts that a new way of measuring GDP introduced earlier this year, which boosted growth by several points, may have distorted the macroeconomic view.

The Reserve Bank of India has warned the new series is clouding the picture, and reckons growth is still slow in picking up. Still, the economy is in better shape than when Modi took the reins a year ago.

He has been helped by a dramatic slide in global crude prices that has cooled inflation and helped narrow the fiscal and current account deficits, giving the RBI leeway to cut interest rates.

Modi's drive to make it easier to do business in India has generated optimism, and has led to a marked increase in foreign direct investment.
A massive increase in the government's planned spending on roads, railways and ports this year is expected to break a persistent investment logjam.

The next release of quarterly GDP estimate for the quarter April-June, 2015 (Q1 of 2015-16) will be on August 28.