Indian economy grew at 7.4% during September quarter of fiscal 2016, which was higher than 7% growth recorded in June quarter. However, GDP growth was tad lower than market expectation of 7.5%. During the same period last year, the economy grew 8.4%.

The Finance Ministry said that the overall growth of the Indian economy is expected to be around 7.5% in FY16 on the back of the strong numbers released by the Central Statistics Office (CSO).

The Finance Minister Arun Jaitley said that the growth is being mainly driven by pick-up in the manufacturing sector, which has grown by 9.3% in the second quarter. Similarly, the fixed investment showed signs of revival as it grew by 6.8%.

Further, Jaitley added that service sector growth was robust at 8.8%, with the trade and transport services leading the way.