India retains lead as fastest growing major economy in the world

GDP is basically defined as a monetary measure of the market value of all final goods and services produced in a period.

The official data released on Tuesday helped India retain the title of fastest growing major economy in the world.

China reported 6.8 per cent growth during the same period,

However, the Oct-Nov GDP was below the 7.3 per cent annual growth rate recorded in the immediately previous quarter.

Economists were waiting eagerly for the GDP numbers as that would indicate to what extent the demonetisation and the note ban had affected the Indian economy.

But Economic Affairs Secretary Shaktikanta Das, while speaking to the media on Wednesday, said that the numbers completely negate the kind of negative projections and speculations made about the impact of demonetisation.

According to moneycontrol.com, a section of economists believe that India might end up revising its latest quarter numbers since some of it does not add up with high frequency real activity data that provide more accurate snapshots of the economy. Monthly data on auto sales, purchasing managers' indexes, cement production and capital goods production in November and December showed notable declines, suggesting cash-intensive consumption and services were hit.

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