India, New Delhi: India once again gained its status as the world's fastest growing major economy in the October-December quarter, surpassing China for the first time in a year as government spending, manufacturing and services all picked up.

Thus sideling those including high profile economist’s and political leadership who called denomination and implementation of GST a curse for the economy of the country, sharp growth picked up in October – December quarter expending by 7.2%, came as a direct slap on their face. This clearly indicates that economy has a turnaround after demonetization and GST, which can be termed as success.

India, Asia's third-largest economy grew 7.2 percent in the December quarter, which was its fastest in five quarters, The data released in Wednesday by Ministry of Statistics, it beat China's 6.8 percent and a forecast of 6.9 percent by analysts polled by Reuters.

This is the fastest growth in GDP in the last five quarters and India has once again regained its status as world’s fastest-growing major economy, surpassing China after a gap of one year..

This has forced the Statistics Office to revise its estimates of GDP growth for the full year of 2017-18 to 6.6 percent against its earlier estimates of 6.5 percent. And that of July-September quarter of 2017-18) to 6.3 percent.

Ahead of the data release, economists polled by Reuters had expressed concerns over the increase in non-performing assets (NPAs) of state-run banks, and said if they are not handled effectively it would hurt economic activity.

The fall of Indian economy for straight five quarters raised concerns in government. Before seeing an expansion in the second quarter of 2017-18, sharp growth in third quarter indicates that the country has finally come out from the impact of demonetization and GST. The 2018-19 could do well for India as a global economy, is expected to move up in the New Year.

Adding to those worries, the second biggest state lender, Punjab National Bank (PNB) this month revealed a loan fraud that's the biggest in India's banking history.

The fraud has cast a worrying shadow over the workings of state-run lenders, already reeling from accumulated bad loans accumulated that are higher than those of banks in most major economies. Modi faces criticism over icresing bad loans at state banks and the $1.77-billion fraud at state lender Punjab National Bank (PNB), which is the biggest in the country's banking history.

Moody’s a rating agency said that global economic growth will turn higher and peak in 2018. The agricultural sector too witnessed a fast growth of 4.1 per cent against 2.7 percent in the second quarter. The construction sector grew by 6.8 percent in the third quarter. The service sector is projected to 7.7 percent for the third quarter 2017-18 from 7-1 percent in the previous quarter.

Economists are now anticipating the Reserve Bank of India (RBI), which is trying to balance concern over inflation with support for growth, could raise interest rates after its next policy meeting on April 5.