What's going on?

India took over China last year as the world�s fastest growing large economy – and it solidified its position in the final quarter of 2015: its economy grew 7.3% versus the same period in 2014 (according to its government�s official estimates).

What does this mean?

India�s Prime Minister, Narendra Modi, has been trying to boost the economy by, among other things, increasing spending on infrastructure. The low price of oil has also helped as India has to import most of its energy resources, like oil.

But India is not immune to the global slowdown: the 7.3% was slower than the previous quarter�s 7.7% growth rate. There is also quite a bit of concern amongst economists that India�s data isn�t compiled accurately and that growth is not as high as reported (many economists also have the same concern about China).

Why should I care?

Bigger picture: India has been a bright spot. China�s slowing economy has hit many other emerging markets (EM) hard. Assuming Indian growth is anywhere near the official estimate of 7.3%, it�s doing very well compared to other EMs. And one major reason is that it isn�t reliant on selling commodities like iron ore into China and is therefore less affected by China�s slowdown.

For markets: Despite economic growth, Indian stocks performed badly in US dollar terms. They�re down about 20% in the past year. The strong US dollar / relatively weak Indian rupee is one reason. Remember, it�s useful to look at the performance of international investments in your home currency (e.g. look at it in Euros, if you�re European). That�s because the investment is subject to both the movement of Indian stocks and to the movement of the rupee�s value versus the dollar.