1^st December 2009, India.

The Indian economy grew 7.9 per cent during the month july-september period- its strongest in six quarter. On the back of highest consumer spending  and private investment according  to government data released on Monday.

It beats more forecast and prompted experts to revise their full year growth projections. “ I hope it will be possible to achieve 7 per cent plus growth, but it is too early to predict. I will wait for the third quarter result”, said finance minister Pranab Mukherjee. The Indian economy’s growth slowed down to 6.7 per cent in 2008-09 after growing at around 9 per cent  for four straight years before the financial crisis which soiled from the US to the global economy. The latest data cheered  the markets with 294- point, or 1.8 per cent, gain for the sensex. The acceleration in growth through the july-september quarter was led by manufacturing, which grew 9.2 from year ago, helped largely by a slew of stimulus  measures since last October.

“The latest quartly GDP figures are further confirmation of the recovery of the Indian economy,” said Harshpati Singhania, president Federation of Indian Chambers of Commerce and Industry. However there are concerns over rising inflation and widening defiect in government  budget. The impact of drought on farm output will show up in the next quarter, offsetting some of the surge in manufacturing and services.