Contrary to all expectations the Indian economy is back with a bang. In the July-September quarter the country’s GDP grew at 7.9%, its fastest in 18 months and just 1% lower than China’s.
The figure is not only higher than the 6% predicted by the Reserve Bank of India but also 6.3% by the Planning Commission and the 6.5% by the Prime Ministers economic advisory committee.
Finance minister Pranab Mukherjee said that this unexpected jump in growth is due to the government’s Rs.1,86,000 crore stimulus package and reviving consumer demand and hoped that this would provide the ground to post at least 7% growth for the full year 2009-10.
The bulk of the growth that is 9.2% has come from the manufacturing segment, while mining and construction activities expanded by 9.5% and 6.5% respectively. A major negative influence has been the agriculture sector due to the failure of monsoons in many parts of the country.