Belying predictions, the Indian economy grew by a significant 7.9 per cent in the second quarter of this fiscal, up from 6.1 per cent in the previous quarter, essentially due to a good showing by the industry and the services sector. The growth compares favourably to 7.7 per cent recorded in the July-September quarter in the previous year. Consequently, the economy rose by 7 per cent in the first half ending September 30 of the current fiscal on the back of stimulus packages and revival of domestic demand, giving hopes that final figures for the year could be much higher.Happy with the high growth in the second quarter, Finance Minister Pranab Mukherjee expressed confidence that the economy will grow by over 7 per cent this fiscal.Home Minister P Chidambaram said Indian economy is resilient and will continue to get funding from international community.Buoyed by better than expected GDP growth, the RBI said it will have to raise the country's growth outlook for 2009-10 from the current estimates of 6 per cent. RBI Depty Governor Subir Gokarn told reporters in New Delhi that the recovery is mainly driven by government spending and it is premature to forecast without knowing the impact of the monsoon on the third quarter figures.
News On AIR | December 1, 2009 1:32 PM
Indian economy grows 7.9 % in second quarter