India has said its economy is set to grow by 7.2% in the year to the end of March, raising the chance that state support could soon be withdrawn.Government stimulus measures helped to maintain strong growth during the global downturn, but attention is now turning towards cooling rising prices.Some now expect the government to raise interest rates earlier than expected.
Strong growth in manufacturing in India is helping to compensate for falling agricultural output.
"These numbers mean that the government will have to consider exiting from the fiscal stimulus in the budget," said Rajiv Kumar at Delhi-based think-tank ICRIER.