Services Sector Shields Indian Economy From Still-High Rates

India’s economy grew faster than the government’s expectations last year, as demand spurred an expansion in the services sector and cushioned the impact of elevated interest rates.

Data released Wednesday showed gross domestic product in the year to March 2023 grew 7.2%, higher than the 7% median estimate in a Bloomberg survey as well as the government’s forecast made three months ago. While this is slower than the previous fiscal year’s expansion of 9.1%, India is still recording one of the fastest growth rates among major world economies. Investment and consumption supported growth, the data showed.