India’s economy grew at an annual rate of 7.4% between July and September, official figures show, picking up from the 7% rate of growth in the previous quarter.
Higher domestic demand and manufacturing activity fuelled the pace, taking the rate of growth above that of China.
India’s central bank is meeting to set the level of interest rates on Tuesday.
Last month it cut rates by half a percentage point to 6.75%.
India’s economy has benefitted from a fall in commodity prices, which have made imports of heavily bought-in goods such as fuel and gold less expensive.
India’s growth has recently been outpacing China, which is growing at a rate of 6.9% according to the latest figures.
But although headline growth appears buoyant in India, the way the statistics are compiled has changed recently, making comparisons difficult.
In parts of the country a drought has damaged agricultural output and farm wages for the second year running.
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