The third quarter GDP growth of India has turned out to be far better than most of the analyst expectations. The Indian economy was expected to grow only by 6.3% as per consensus estimates, and even government officials were expecting the growth to be around the 6% levels.
But the actual numbers have been announced at 7.9% owing to massive growth in service sector and also industrial output. The massive stimulus spending by the government seems to be working, but the spike up in the inflation in the last four weeks has started haunting the government. There is likely to be a spike up in the interest rates in the coming months by the central bank.