India overtakes China as fastest growing economy in Q3Staff writer ▼ | December 2, 2015
India’s economy showed annualized growth of 7.4% in Q3, surpassing mainland China’s expansion of 6.9% for the same period due to improved domestic demand and manufacturing output, while the finance and labor markets underperformed.
India Fundamentals have thus improved on both the demand and supply side
With the Indian central bank policy meeting scheduled for Tuesday, no policy action is expected now as the fundamentals improved, contrary to the previous expectations that the regulator might have added stimulus to spur domestic growth, adding to the harmful war of currency devaluations on a global scale.
India's economy expanded an annualized 7.4% in Q3, accelerating from the 7% growth in the previous quarter, surpassing mainland China's pace of expansion, currently estimated at just below 7%.
Lower commodity prices helped India's manufacturing, boosting its competitiveness and cost-efficiency, while a stronger domestic consumer demand provided another source of growth.
India's fundamentals have thus improved on both the demand and supply side, a sign of sustainability of the macroeconomic performance. ■