India's economy grew a forecast-beating 8.9 percent year-on-year in the July-September quarter, data showed on Tuesday, as the South Asian nation returned to pre-financial crisis expansion levels.
The fiscal second-quarter boom beat expectations of growth of around 8.2 percent and was propelled by a 9.8-percent jump in manufacturing from a year earlier and an 8.8-percent leap in construction.
Asia's third-largest economy also got a boost from stronger farm production, which expanded 4.4 percent, thanks to a bountiful monsoon, data from the Central Statistical Organisation showed.
The growth estimates got a leg up as the industrial sectors, which account for approximately 20% of the overall GDP, got a boost in the second quarter due to the lower inflation numbers under the new series.
Lower inflation numbers gave a statistical boost to industrial growth estimates and national income numbers, compared with those estimated using the old series.
Rupa Rege Nitsure, Chief Economist, Bank of Baroda , said: "This indeed is a very strong reading despite the fact that we had seen some easing of industrial production in the second quarter. With this reading, achieving a 8.5 percent for full year growth target is not going to be difficult. From a market perspective, this means that India will attract more capital inflows and it will put upward pressure on the rupee."
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India's Q2 GDP growth above estimates at 8.9% vs 8.8% QoQ
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