2010-11-30 07:44:05
Raisina Hill, which houses important government buildings, as the sun sets in the horizon, in New Delhi, India India is the world's second fastest-growing major economy
India's economy grew faster than expected in the second quarter of its financial year, figures show.
In the three months to September, gross domestic product (GDP) was up 8.9% from the same period last year.
Although only the world's 11th biggest economy, India is the second fastest-growing major economy, behind China.
Strong farm production, increased vehicle sales and growing bank lending helped to boost the growth rate, India's statistics agency said.
There was a 9.8% jump in manufacturing from a year before, and an 8.8% increase in construction, while farming output was up 4.4%.
Meanwhile, the growth rate for the first quarter was revised upwards to 8.9% from 8.8%.
Some analysts believe the strong performance could lead the central bank to introduce monetary tightening to restrict inflation, running at 8.58%.
Interest rates have been raised six times since the start of the year and the Reserve Bank of India has said bringing down inflation remains a priority.
On Tuesday, Finance Minister Pranab Mukherjee said India could achieve GDP growth of between 8.5% and 8.75% in the current financial year, which ends in March 2011.