New Delhi (AsiaNews / Agencies) - With an economic growth rate of 8. 8% recorded last quarter, India 's economy grew fastest in the world after China since 2007. Behind this success, a strong mining and industrial production which compared to 2009 grew by 9% and 12%. Slower than the agricultural sector which only grew by 2.8%. The data also bodes well for a future recovery among the world economies. So far India lies in 11th place.
Official figures reveal that car sales are rising fast, especially in the internal market, as well as banking, indicating a confident growth in domestic demand and general confidence that the positive trend will continue. Tata Motors Ltd, a leading Indian car manufacturer, showed 41% increased sales in July, while TVS Motor Co., a leader in the motorcycle sector, has recorded an increase of 35%.
The growth figures released today corrected upwards the forecast of 8.5% over the 2010/2011 fiscal year made by Duwuri Subbarao, Governor of the Bank of India (BOI) in late July.
However, the high risk of a growth in inflation remains, which currently stands at 6%. The rise in prices affects mainly food and could erode the economic benefits and cancel hundreds of millions of poor people, exacerbating the already deep divide between social classes.