India’s Economy Has An Impressive Rise of 8.9%

Tagged as of the fastest growing economy in the world, India’s economy surprisingly increased to 8.9 per gross domestic product growth.

D.K. Joshi, principal economist at Crisil said “Overall the economy seems to be in good shape, though the next two quarters will see a moderation from these levels…This growth is taking place despite the central bank withdrawing the easy monetary stance, in spite of the fiscal authorities also taking away part of the fiscal stimulus”.

The central bank has increased its lending rate or the repo rate, a discount at which the central bank repurchases government securities from commercial banks, by 150 basis points since mid-March to rein in inflation and a majority of analysts expect it to hold interest rates when it reviews monetary policy on Dec. 16.

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