India's economy grew by 7.9% in 2015-16, a shade faster than previously estimated 7.6%, on account of better performance by the farm and industrial sectors. CSO, however, left the figure for 2014-15 unchanged at 7.2%.
The revised growth rate would be the fastest pace of expansion for the economy in five years as data for the new series introduced in 2011-12 is available now. It would give the government ammunition to counter the Opposition's charge that the NDA's handling of the economy has slowed down the growth rate.
CSO had said that the economy was estimated to grow 7.1% during the current financial year but did not factor in the impact of demonetisation. The Economic Survey, however, indicated that the growth rate could slip to 6.5% due to the cash squeeze.
Higher growth rate would push up the base and could result in a further slowdown during the current financial year. It would, however, help the government show a better fiscal performance since the base has expanded.
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