India's economy grows 7.3 percent

India posted annual growth of 7.3 percent on Friday, overtaking China in the first three months of 2015, but analysts warned further measures were needed to boost the economy. The growth rate for the financial year that ended March 31, 2015 came in slightly lower than the 7.4 percent that the statistics ministry had predicted back in February.
But the news that Asia's third-largest economy grew by 7.5 percent in the fourth quarter, overtaking China, is a major boost for Prime Minister Narendra Modi a year after he was elected. India's giant neighbour posted growth of 7.0 percent for the first three months of 2015. India's Finance Minister Arun Jaitley said the latest figures suggested the economy was in recovery mode. "Manufacturing and services indicate that we have a potential to grow at 8-9 percent and beyond," the Press Trust of India news agency quoted Jaitley as saying.