Why India's economy expanded probably the fastest in recent times?

According to me I think it is because of the global slowdown, where many strong economies started decelerating. For eaxmple in the last quarter  economic growth in the U.S. slowed to a 1.6 percent annual rate but India’s merchandise exports increased 13.2 percent in July. So the slowdown has brought many opportunities for us, thats the reason why we see a huge growth.......

In India there was no recession but the corporates act as we have one. Due to recession in US & UK & EUROPE to cut the cost most of the auto & engineering components has sourced from Indian companies.  Thanks to Govt for its Stimuli support thro' financial assistance & tax sops. The ancillary suppliers & cos. has made their supply to the manufactures with wafer thin margin fearing recession.

even employee unions in almost all sectors has accepted salary cuts against job loss/lay off.  Banking sectors has negligible investment abroad. only one private bank has lost heavily otherwise all the other major Bank including PSU'S Losses are negligible.  Financial discipline strictly adhered.

So these factors has pushed the superficial growth. especially in engineering Industry, Banking Sectors.

India’s economy probably grew at the quickest pace in more than two years, increasing pressure on the central bank to raise interest rates even as Europe’s sovereign- debt crunch threatens to undermine the global recovery.India and China, the world’s fastest-growing major economies, face the threat of the debt crisis cutting demand in the European Union, the market accounting for a fifth of their exports. India’s central bank said last week that it will raise rates only cautiously even though they are “out of line” with inflation, running close to 10 percent.

No doubt that we had growth in manufacturing sector, agriculture, retail. etc ..etc... but the main reason that we were able to sustain that growth rate was the steady increase in internal consumption in India itself. The purchasing power of indians was increasing day by day resulting in to more consumption of produced goods here @ home itself. Whereas in other countries like the US, Japan, and other European countries, the internal consumption was either stagnant or was deteriorating. Moreover most of these countries were majorly dependent on their exports, which were badly hit during the recession period creating a vicious circle and hence demolishing other sectors as well... In india the engine never stopped and the speed rather increased. So by the time the world was coping up with the recession period and started slowly on the growth track, India already having a head start was well poised to be leading the curve.

As per my view GDP is high because flow of money is quite very high because of that inflation is high. These are the main two reasons for high GDP but in real we are laking behind in figures of Distribution of income, and percentage of unemployed people Growth rate is more than GDP.

IT is probably due to a sound manufacturing sector which in turn is built from a sound knowledge base. Which means that our school and colleges are doing the trick of educating the masses or on the other hand our youth are learning the right values and performing.