Asia-Pacific

India logs robust 7.9% GDP growth

(Xinhua)
Updated: 2009-11-30 15:46

NEW DELHI: India's economy grew by 7.9 percent in July-September quarter from a year earlier, exceeding expectations of 6 to 7 percent as stimulus measures boosted demand and manufacturing activity, according to a data published by the government on Monday.

Manufacturing sector growing at 9.2 percent in the second finical quarter helped to push the GDP growth rate. Despite concerns over monsoons, the agricultural sector recorded a positive growth of 0.9 percent, the data showed.

The construction sector grew at 6.5 percent while financing, insurance, real estate growth came in at 7.7 percent.

India Planning Commission deputy chairman Montek Singh Ahluwalia said that the stronger-than-expected GDP data showed that the economy is back to its normal growth trajectory, and the quarter's GDP numbers raised the possibility of revising GDP growth target of this finical year above 6.5 percent.

Analysts here said that this may add pressure on the Reserve Bank of India to raise interest rates as inflation rises.

India's economy grew 6.1 percent in the first quarter of 2009-10 and 6.7 percent in 2008-09, slower than 9 percent in the previous three years.