India's economy grew by 7.9% in the quarter through September from a year earlier, shattering forecasts as stimulus measures boosted demand and manufacturing activity surged.
The annual growth for the fiscal second quarter was far above a median forecast of 6.3% in a Reuters poll, and will add pressure on the central bank to raise interest rates as inflation rises.
Manufacturing output expanded by 9.2% in July-September from a year earlier, while farm output grew by an annual 0.9%, government data showed on Monday.
India's economy grew 6.7% in 2008-09, slower than 9% or more in the previous three years.
The Reserve Bank expects at least 6% expansion this fiscal year that ends in March 2010.
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