Growth in Asia's third-largest economy likely picked up pace during the July-September period but don't cheer just yet, economists warn.
India's real gross domestic product (GDP) is expected to expand 7.3 percent on year, up from 7 percent in the April-June quarter, on the back of improved consumption and rising industrial production, according to widespread estimates from private sector economists.
Discretionary consumer spending has been holding up better, reflected by a 9.5 percent annual rise in September car sales, Morgan Stanley pointed out in a Monday report. Meanwhile, positive factory production is another bright spot, with annual industrial output expanding 4.2 percent in July, 6.3 percent in August and 3.6 percent in September.
The upshot is ultimately buoyed growth, but it's still far from full-throttle, said Vishnu Varathan, senior economist at Mizuho Bank.
"Admittedly, with softer inflation boosting consumption, a less dire-than-expected monsoon outcome and nascent industrial uptick, India is still the bright spot in Asia. But growth momentum is not, as yet, on a solid footing."