Dec 1, 2009

Indian economy grew 7.9% in the past quarter from a year earlier, far above forecasts of 6.3% and the fastest in any quarter since June 2008. This is its fastest pace since last year's global financial crisis. 

The latest numbers show that the Indian economy is beating forecasts to grow at a faster-than-expected rate. The growth in the July to September quarter is the highest since April, last year.

Finance Minister Pranab Mukherjee says the recovery has been helped by government stimulus spending and a surge in manufacturing. 

"One point is quite clear that the initiatives taken by the government by providing stimulus and helping the generation of demand domestically has paid dividend," said the FM.  "And, corporate sector is also responding.  The industrial growth is taking place.  Negative growth of exports has come down.  And, I do hope things will be okay."

India’s GDP growth at 7.9% from a year earlier after rising 6.1% in the previous quarter. The government's stimulus measures seemed to have a direct impact on manufacturing, mining and services, which posted better-than-expected numbers.

The Indian stock market cheered the better than expected numbers and headed for a new intermediate high in December after a minor blip due to the Dubai financial crisis.