With the economy expanding by 8.9 per cent in the July-September quarter, the government exuded confidence that the GDP growth rate during the current fiscal would exceed 8.75 per cent.

“Amid all the depressing news there is a good news…We may be confident that at the end of this year the GDP growth will not be less than 8.7-8.75 per cent… It may be more,” Finance Minister Pranab Mukherjee told reporters in New Delhi on Tuesday.

The government as well as the Reserve Bank of India (RBI) had earlier estimated the economy to grow by around 8.5 per cent in the current fiscal, up from 7.4 per cent in 2009-10.

“I always go by conservative estimates…As per IMF International Monetary Fund) estimates the GDP growth would be more than 9 per cent…IMF may be correct this time. Normally I don’t agree with IMF. Perhaps this time I may agree with IMF”, the Minister added.

According to the GDP data released by the Central Statistical Organisation (CSO), the Indian economy grew at a faster than expected pace of 8.9 per cent during the second quarter of the fiscal.

The growth rate for the first quarter was revised upwards to 8.9 per cent from 8.8 per cent, taking the overall economic expansion during the first half (April-September) to 8.9 per cent.

The CSO data revealed that farm sector during the second quarter recorded a growth rate of 4.4 per cent, up from 0.9 per cent in the corresponding period a year ago.

The manufacturing sector during the same period recorded a growth rate of 9.8 per cent as compared to 8.4 per cent during the same period last year.