India's economy accelerated to 8.2% in the April-June quarter of 2018-19 due to a pick up in manufacturing activity, helped by a lower base during the same period a year ago. Economic growth had dipped to 5.6% in the June 2017 quarter due to destocking by companies ahead of the implementation of the Goods and Services Tax from July that year.
In an update to its World Economic Outlook (WEO), IMF trimmed India's growth projection for 2018-19 by 10 basis points to 7.3%, citing negative effects of higher crude oil prices on domestic demand and faster-than-anticipated monetary policy tightening due to higher-than expected inflation.
The Bank also said India's $2.6 trillion economy surpassed France's in 2017 to be the world's sixth largest, and it was not far before the UK.
GDP growth for the year ended 31 March at 6.7% was a tad higher than previously estimated by the Central Statistics Office but still slower than the 7.1% growth recorded in the previous year.
On Wednesday, the Reserve Bank of India said economic growth was expected to accelerate to 7.4% in the current fiscal, from 6.7% the previous one, despite risks posed by higher oil prices and global trade tensions.(Source : Mint).