India's economy grows 8.4% in Oct-Dec quarter, fastest pace in six quarters

India’s economy rose 8.4 per cent in the October-December period, the fastest pace seen in six quarters and beating all estimates, partly helped by a surge in manufacturing activity, according to data released by the government on Thursday (Feb 29).

The growth rate was much faster than economists’ forecasts of 6.6 per cent as seen in a Reuters poll, and higher than revised growth of 8.1 per cent in the previous quarter.

India has been consistently beating market expectations and has been ranked as one of the fastest-growing economies in the world with China struggling to recover and the eurozone narrowly escaping a recession.

The figures are the last major economic indicator for voters to help gauge the performance of Prime Minister Narendra Modi’s government before national elections due before May.

The manufacturing sector, which for the past decade has accounted for just 17 per cent of Asia’s third-largest economy, expanded 11.6 per cent year-on-year in the December quarter, compared with a revised 14.4 per cent in the previous three months.

The farm sector, which accounts for about 15 per cent of the US$3.7 trillion economy, contracted 0.8 per cent, compared with 1.6 per cent growth in the September quarter. REUTERS

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