India grew at a quicker-than-expected pace in the third quarter, keeping the country on course to overtake China as the world's fastest growing large economy in 2015.

The Indian economy expanded by 7.4pc in the three months to September compared with a year ago, following growth of 7pc in the second quarter, according to the country's statistics office.

Economists had expected growth of 7.3pc in the third quarter, and Monday's data keep India's growth rate on course to overtake China this year, which grew at an annual pace of 6.9pc in the third quarter, representing the slowest expansion since 2009.

India's growth rate has now been equal to or faster than China's for three consecutive quarters.

Concerns about the health of China, the world's second largest economy,triggered a stock market sell-off this summer, and economists expect the country's growth rate to slow further in the coming years.

Economists have also highlighted India's favourable demographics when comparing the two nations.

bbabo.Net