New Delhi: India's economy in the April-June quarter developed faster-than-expected 9.3 per cent from a year earlier, headed by healthy manufacturing and services, but market analysts stated that the speed could tone down in coming months.

The twelve-monthly growth rate for India’s fiscal first three months topped both a medium estimation of 8.9 per cent in a poll and increase of 9.1 per cent in the last quarter.

The securities market lengthened its solid opening gains after the information. The rupee was slight altered changed 41.02 per dollar, and the benchmark 10-year bond edged up 1 basis point to 7.92 percent.

P Chidambaram, Finance Minister said, “Although provisional estimates of 9.3 per cent GDP growth during first quarter are shade below than growth last year (in corresponding period), but given the circumstances on account of external situation, they are quite satisfactory.”

Analysts said the sturdy development did not mean the RBI was expected to recommence raising interest rates, but stated it exhibited the demand for vigilance against an upsurge of price forces.

JP Morgan economist Rajeev Malik said, “This number is good, but does not suggest any need for monetary tightening and we expect the current stance to continue as inflation has come off substantially.”

"We see moderation in growth in coming quarters,” Mr. Malik added.
Manufacturing arose an annual 11.9 percent in the April-June quarter, under the 12.4 percent in the last quarter..

Services developed at an annual speed of 10.6 per cent, whereas farming that the administration is trying to stimulate, boomed by 3.8 per cent, equaling the previous quarter’s expansion rate.