Growth stays high at 8.9%

Hopes of breaching the double-digit growth barrier sprung anew on Tuesday after data showed India’s gross domestic product (GDP) grew 8.9% during the July-September quarter, buoyed by a strong rebound in the farm sector and a robust services sector growth.

Hopes of breaching the double-digit growth barrier sprung anew on Tuesday after data showed India’s gross domestic product (GDP) grew 8.9% during the July-September quarter, buoyed by a strong rebound in the farm sector and a robust services sector growth.

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With this fresh data, released by the Central Statistical Organisation, the government now believes a 9% growth this year is achievable.

“I always go by conservative estimates,” finance minister Pranab Mukherjee said. “As per the International Monetary Fund, India’s GDP growth would be more than 9%. Normally, I don’t agree with IMF. Perhaps this time I may agree with IMF.”

A 9% GDP growth makes India the world’s second-fastest growing economy, after China. The government and RBI had projected an 8.5% growth rate in the current fiscal.