The Chinese economy continues to struggle. India released their recent economic growth figures that showed the country outpaced China in the months of July through September. India also had increased domestic demand and manufacturing activity in the country.
The Reserve Bank of India was expected to adjust interest rates during its meeting on Tuesday. Analysts hope that the news of positive growth will persuade the bank to keep interest rates at the same level in an attempt to control prices going into 2016.
India is Asia’s third-largest economy, and experienced growth of 7.4% during the quarter. China had annual growth of just 6.9% during the same timespan.
Analysts have predicted that India would have a 7.3% GDP growth on the quarter.
India’s economy is doing well, but it is not being driven by private consumption. Many analysts state that the growth has been driven by public spending and not private spending, which is a concern. Investments grew 6.8% year-on-year for Q2, which is up from 4.9% during the previous quarter.
The government has recently boosted its spending to stimulate the economy. Infrastructure has been a major investment portal, and is expected to be heavily invested in 2016 as well.
India is also facing problems caused by a drought that has hurt agricultural output.