India loses the fastest-growing economy tag to China

He also thanked Finance Minister Arun Jaitley for not putting the blame for slowing GDP on the previous Congress government, which he claimed was doing much better with the economy.

While the performance has eaten considerably into the economy's excess capacity, caution remains amid worries about geopolitical risks and a housing market that some observers say may be on the verge of a correction. It is no longer safe to deal in cash.

The government's major achievements in the last three years include taking hard decisions, drastic changes in the governance system and eliminating the government discretions in the process of decision making and overall governance, he said. Earlier, there was a parallel, shadow economy heavily depending on cash.

"At the end of the day, we have to call it strong no matter what", said Derek Holt, economist at Scotiabank. There is now a greater focus on digitisation. Post our reforms against black money; the Taxpayers base has increased.

Gross domestic product grew at an annualized 3.7 percent pace, Statistics Canada said on Wednesday, slightly below expectations for 3.9 percent growth and following upwardly revised annualized growth of 2.7 percent in the fourth quarter. Chief economic adviser Arvind Subramanian, who was also present at the event, said the rollout of the new indirect tax regime will both reduce inflation and increase consumption as prices of commodities are expected to fall.

Britain fell to the bottom of the pile, with a 0.2 percent growth rate meaning the country is expanding at the same pace as Italy.

Maintaining that high level of NPAs was a key challenge for the government, Jaitley said its resolution is work in progress and some action will be taken within the next few days.

The rating agency, however, cautioned that "persistent banking sector weakness from a high proportion of delinquent loans on bank balance sheets will weigh on growth, if not resolved, by constraining credit for investment-related activity". That's the biggest gain since the first quarter of 2012. "Despite persistent global headwinds, India's economy has been able to move on to a steady growth trajectory", added Patel. People need some issues for propaganda. It is significant, given the prevailing jobs scare in the IT sector.

On privatisation of ailing national carrier Air India, Jaitley said Niti Aayog has already given its recommendations to the Civil Aviation Ministry to explore various options.

The finance minister said that demonetisation has established a "new normal". There are mainly two factors for it. One of them is capital formation, "which continues to be relatively soft, and the rate of capital formation is still below 30%", he said. During the quarter, manufacturing growth stood at 5.3 percent, down sharply from 12.7 percent a year ago.

  • Zachary Reyes