With 7.9 pc Q2 growth, govt, RBI, Plan panel improve outlook

New Delhi, Nov 30 (PTI) The economy clocked 7.9 per cent
growth for the second quarter of 2009-10, surprising the
government, the Reserve Bank of India, analysts alike and the
stock markets saluted the performance with a near 300-point
rise in the Sensex today.

Consequently, the economy grew by seven per cent for the
first half, shaking the forecasters out of conservatism and
prompted RBI, Plan panel and the government to say growth
projections may be revised upwards. Hitherto, the growth for
second quarter at every official level was pegged at around
six per cent.
Riding the strong manufacturing growth of 9.2 per cent
and services sector performance, the economy grew much higher
than 6.1 per cent in April-June quarter and 7.7 per cent in
the second quarter of last fiscal.
"Taken together, the two quarters, I do hope it would be
possible to achieve seven per cent plus (growth rate), but it
is still too early to predict. I will wait for the third
quarter figures," Indian Finance Minister Pranab Mukherjee
said.
The performance should end the debate on the direction of
growth amid the adverse impact of weather on farm sector which
grew by just 0.9 per cent during the quarter, and the RBI and
government should now focus more on taming the inflation,
particularly surging food prices, a top economist said.
"This (7.9 per cent) has turned out to be more positive
than one has expected...RBI's monetary policy would now be
more focused on inflation," Prime Minister's Economic Advisory
Council Chairman C Rangarajan, who had earlier predicted a
near 6 per cent growth for the quarter, told PTI. PTI RMI
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