India economy grows by forecast-beating 8.9 percent

NEW DELHI, November 30, 2010 (AFP) – India’s economy grew a forecast-beating 8.9 percent year-on-year in July-September, data showed Tuesday, underscoring the country’s brisk recovery from the global financial crisis. The healthy numbers brought temporary cheer to the Congress-led government, buffeted by a string of scandals including a damaging telecom corruption scam which could have cost the public treasury up to 40 billion dollars.

The robust growth, propelled by manufacturing, services and a revived farm sector, was significantly above market forecasts of 8.2 percent growth.

The expansion came despite the rapid unwinding of massive fiscal and monetary stimulus steps taken in the last few years that helped shield the country of 1.2 billion people from the global slump.

“These numbers are reassuring, especially with monetary and fiscal stimulus being withdrawn — it shows the resilience of this recovery,” D.K. Joshi, chief economist at ratings agency Crisil, told AFP.

Adding to the good news for the government, first-quarter growth was revised upwards to 8.9 percent year-on-year from 8.8 percent, data from the Central Statistical Organisation showed.

The South Asian country is the w