India's economy grew by more than 7 percent between October and December for the first time in 4 quarters.

India's government said on Wednesday that the GDP during that period was up 7.2 percent year on year. The figure improved for the second straight quarter.

Government officials attribute the recovery to output growth and sales in the manufacturing and service sectors. The farming industry also enjoyed brisk sales.

The country's economy slowed down after Prime Minister Narendra Modi abolished 2 large denomination banknotes in November 2016, in a bid to combat tax evasion. GDP growth dipped below 6 percent at one point.

Some analysts say the result is a good sign for Modi, as the country will have general elections next year.