India's economy grew 7.4 per cent between July and September compared with the same three months in 2014, according to official figures released today.
Economic growth in the country is picking up after growing seven per cent year-on-year between April and June.
Manufacturing growth accelerated to 9.3 per cent, faster than the 7.9 per cent registered last year.The construction sector was weak, expanding 2.6 per cent year-on-year.
The service sector was strong, with trade, hotels and transport & communication and services related to broadcasting growing by 10.6 per cent.
Meanwhile, financial, insurance, real estate and professional services grew at 9.7 per cent.
The Reserve Bank of India, the country's central bank, has cut interest rates four times this year in a bid to boost growth and reverse declining rates of inflation.
Ajay Marwaha, director of investments at Sun Global, said:
As the figures show, the outlook for India’s economy remains optimistic. It has been less impacted by the slowdown of China than other emerging markets but it must ensure that internal structural reform continues at a brisk pace.
Given a limited scope for incremental rate cuts in the short run, India will have to continue to focus on de-clogging credit channels and keeping inflation in control to further growth.
Assuming that India is able to perform against this backdrop, we believe the economy has the ability to outperform any other emerging market in 2016 . We are confident that the Indian credit market, increasingly opening up to international investors, is at an exciting stage of growth.