India’s economic growth accelerated to 7.4% in the July-September quarter, overtaking China as the world's fastest growing major economy, according to data from the Central Statistics Office. The acceleration was attributed to a boost in manufacturing, mining and services sectors. The growth rate in the previous quarter ending June 30 was 7%.

The growth rate for the latest period was far below 8.9% recorded in the corresponding quarter of the previous fiscal. The government had projected a growth rate of 8.1-8.5% for the current fiscal. However, it bettered China’s growth rate of 6.9% for the same period. Russia contracted by 4.1%, while it is forecast that Brazil’s economy may have shrunk 4.2% in the same period.

The signs of recovery in the GDP follow a series of rate cuts announced by the Reserve Bank of India in recent months, reported PTI. According to the statement, the economic activities which registered a growth of over 7% in the second quarter are trade, hotels and transport and communication, and services related to broadcasting, financial, insurance, real estate and professional services, and manufacturing.