Mumbai – India’s economy grew faster than expected in the second quarter of its financial year, figures show.
In the three months to September, gross domestic product (GDP) was up 8.9 per cent from the same period last year.
However, inflation remains a real concern for authorities, with new figures showing prices rising by 9.7 per cent in October.
Although only the world’s 11th-biggest economy,
India is the second fastest-growing major economy, behind China.
Strong farm production, increased vehicle sales and growing bank lending helped to boost the growth rate, India’s statistics agency said.
There was a 9.8 per cent jump in manufacturing from a year before, and an 8.8 per cent increase in construction, while farming output was up 4.4 per cent.
Meanwhile, the growth rate for the first quarter was revised upwards to 8.9 per cent from 8.8 per cent.
But the rapid economic growth has also led to a pick-up in prices, with India’s Consumer Price Index for October up 9.7 per cent from a year earlier.
That was a slightly slower rate than September, according to the statistics agency, but it was still the second-fastest rate of inflation in the G20 nations after Argentina.
Some analysts believe that the latest strong growth figures could lead the central bank to take more action to try to cool inflation.
Interest rates have been raised six times since the start of the year and the Reserve Bank of India has said bringing down inflation remains a priority.
(BBC)