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India's Economy Posts 8.8 Percent Growth

  • VOA News

India's economy grew by its fastest rate in more than two years during the quarter that ended in June.

Data released Tuesday showed that the economy grew by 8.8 percent compared to the same period last year.

The increase was fueled by strong growth in the manufacturing and farming sectors.

Economists said a weak first quarter last year helped boost the most recent numbers. However, they warned that they expect the pace of growth to slow in the second quarter.

Senior government economist Montek Singh Ahluwalia says it is still forecast that India will post a full-year growth of about 8.5 percent, or even better.

Despite the strong performance, India is still suffering from high inflation, which is close to 10 percent. Policy makers say bringing prices under control is a priority.

India's economy is mainly driven by domestic demand and has the world's second fastest growth rate after China's.

Some information for this report was provided by Reuters, AFP and AP

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