In a quarter partially affected by the 50% U.S. tariffs, the Indian economy grew faster than expected at an annual rate of 8.2% in the quarter ending in September.
The growth was an acceleration from 7.8% in the previous quarter, when a lower deflator unexpectedly boosted real growth. A deflator measures how inflation affects the value of total output.
A Reuters poll of economists had pegged the July-September gross domestic product at 7.3%.
India’s nominal GDP — which does not account for inflation or deflation — grew 8.7% in the September quarter compared to 8.8% in the previous quarter.
The sharp improvement in GDP growth rate was on account of a pick up in manufacturing and construction activity and domestic consumption. Financial and real estate professional services have “sustained a substantial growth rate” of 10.2% in Jul-Sep, the government said in a release.
