The figure surpassed China's growth rate of 6.8 percent in the January-March quarter, confirming India as the fastest growing major economy.
Encouraged by the quarterly surge, the government on Thursday said it is keeping its forecast of GDP growth of 7.5 per cent for fiscal year 2018-19 unchanged.
Moody's Investors Service, a credit rating firm on Wednesday estimated a 7.3 per cent growth in Indian Gross Domestic Product (GDP) for the year 2018, thereby cutting it down from a previously projected 7.5 per cent. Strong growth in agriculture (4.5 per cent), manufacturing (9.1 per cent) and construction sectors (11.5 per cent) contributed to the overall growth.
Briefing reporters in New Delhi this evening, Secretary, Department of Economic Affairs S C Garg said, GDP growth has been revised upwards from 6.6 percent. The manufacturing sector, which witnessed improvement in the last three quarters, is expected to benefit in Q1 of FY19 due to favourable base effect. It is down about 6 per cent so far this year against the U.S. dollar.
The 9.1% growth rate of net indirect taxes (taxes less of subsidies) took GDP ahead of the gross value added (GVA) at basic prices, which stood at 6.5% during the fiscal year, against 7.1% a year ago.
The per capita income at current prices during 2017-18 is estimated to have attained a level of Rs 1,12,835 as compared to the estimates for the year 2016-17 of Rs 1,03,870 showing a rise of 8.6 percent. He emphasized that this is the development under leadership of Prime Minister Narendra Modi and Union Minister Arun Jaitley.
The "agriculture, forestry and fishing" sector showed a growth rate of 3.4 per cent as against the previous year's growth rate of 6.3 per cent, while the growth in the "manufacturing" sector was estimated at 5.7 per cent as against the previous year's growth rate of 7.9 per cent.
"Seems like we have moved beyond the teething troubles related to GST implementation", said Tushar Arora, a senior economist at HDFC Bank. Possibly, the biggest risk could be rising crude oil prices, which this month hit $80 a barrel, their highest since 2014.
As per the report, India's current account deficit will increase.
Forecasts ranged from 6.9 to 7.7 percent.
Monsoons deliver about 70 percent of India's annual rainfall and are the lifeblood of its $2.5 trillion economy, spurring farm output and boosting rural spending. Some headwinds do remain from the perspective of rising crude oil prices, and unwinding of global easy monetary policy & rising interest rates.