Experts linked the growth to robust demand for consumer durables in the festive season and a base effect stemming from a lacklustre show previous year. But they are still cautious on the rebound.
Finance minister P Chidambaram, however, saw “green shoots” of a rebound in the economy. “Investments are taking place, capacity is being created and consumption is happening in consumer durables and non-durables.”
In other data released Wednesday, retail price inflation inched up to 9.9% in November from 9.75% previous year, hitting hopes of an interest rate cut at the RBI policy review on December 18.