India’s economic growth jumps to 7.7%

By Mark Thompson

The world’s fastest growing major economy is getting even hotter.

India’s gross domestic product grew by 7.7% in the quarter ended March, the government said Thursday. That’s a big jump from the revised 7% growth rate recorded the previous quarter.

It also means India continues to grow faster than China, which posted growth of 6.8% in the first quarter of 2018.
“Rapid growth in agriculture (4.5%), manufacturing (9.1%) and construction sectors (11.5%) contributed to the overall growth,” the Indian government said.

Growth for the 2017-2018 financial year as a whole came in at 6.7%, according to provisional figures.

The latest GDP numbers come amid concerns that rising inflation, fueled by higher oil prices and a weaker rupee, could start to dent growth in India.

The Indian government earlier this month┬ásought assurances from Saudi Arabia, OPEC’s biggest producer, that oil prices would remain “stable and moderate.”

Energy minister Dharmendra Pradhan told Saudi oil minister Khalid Al-Falih of his “concern about rising prices and its negative impact on consumers and the Indian economy,” the Indian government said.

World oil prices have spiked by┬á17% in 2018, and are up more than 55%┬áover the past 12 months. Concerns about Iranian exports following President Donald Trump’s decision to pull out of the international nuclear deal and a collapse in Venezuelan production have helped drive prices higher.

Oil prices have fallen back in recent days after OPEC and Russia signaled their readiness to start pumping more barrels after a meeting of the cartel next month.

Sugam Pokharel and Rishi Iyengar contributed to this article.

Source: CNNMoney

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