Economy Of India Had Best Quarter In Two Years Amidst Fall of Rupee

The economy of India had experienced its best quarter in two years during the three months that ended in June, increasing at a powerful 8.2 percent. It comes even as the rupee, the country’s official currency, continues to fall.

The growth was boosted by consumer spending and a strong performance of the manufacturing sector.

It is considered the highest performance of the country in a quarter since the 9.3 percent growth that India was able to experience in the January-March quarter of 2016.

In June, the manufacturing sector rose by 13.5 percent having declined by 1.8 percent during the same period during the previous year. It was boosted by greater government spending and better rainfall that was able to help leave households with more money to spend on consumer items.

However, when it came to its currency, the rupee experienced its worst month against the dollar in three years.

In August, the currency dropped by 3.6 percent. It is considered as its steepest decline since August 2015. Also, it is already its fifth straight month of falls.

Just like other currencies in some other emerging economies, the rupee slumped amidst fears that the United States of America will soon impose extra trade tariffs on goods that are from China.

During the same quarter in 2017 the economy of India improved by only 5.6 percent.

The nation’s expansion outstrips the 6.7 percent growth that was recorded by China during the same quarter.

Last year, the economy of India hit $2.6 trillion (£2 trillion). According to data from the World Bank, it has overtaken France as the sixth-largest economy in the world and closing in on the United Kingdom.

An India economist at ANZ Bank, Shashank Mendiratta, stated: “This is probably the best GDP trend we have seen in the first half of the fiscal year.”

He added: ”Going ahead I expect growth to moderate as private investment is unlikely to grow at a faster rate due to stressed assets.”