India's GDP Flys At 8.9% In April-June, Highest Q1 Rise After '00-01

Sat, 09/30/2006 - 20:18 — Sahad P V

This is good news. India is the new Asian tiger if things go like this. Indian economy grew at 8.9 per cent, the highest ever Q1 growth since 2000-01. A strong growth in services and manufacturing has helped the Indian economy beat all forecasts with 8.9 per cent growth during the April-June quarter.

The rate of inflation fell to 4.56 per cent for the week ended September 16 from 4.61 per cent in the previous week. Indian Finance Minister P Chidambaram said his target was to drive it below 4 per cent, which could lead to easing of interest rates in the days to come. The Reserve Bank of India (RBI), which raised its key short-term interest rate thrice during 2006 to cool the economy and check inflation pressures, next reviews policy on October 31. At its last review in July, the RBI increased rates by a quarter of a percentage point to 6 per cent.

Graphic From The Hindu Business Line