India Economy Booms in Q1

02 June 2006

NEW DELHI - India's economy grew 9.3% year-on-year in the quarter ended March 31.

The forecast-beating figures, from the Central Statistical Organization, were fuelled by strong farm production and vibrant consumer spending and are on a par with China's continued strong growth.

As a result the federal government lifted its figure of GDP growth in the fiscal year that ended in March to 8.4%, up from an 8.1% estimate.

Finance Minister P Chidambaram said the government would need to speed up market overhauls and the construction of infrastructure to keep up the current economic pace.