Basing on India’s current rate of economic growth, experts have predicted that the country’s $1.2 trillion economy may be one of the first few countries around the world to recover successfully from the recent global recession. According to the country’s economic data, India’s economy was able to experience a growth of 7.9% by the end of the previous quarter in the 30th of September. So far, this has been the country’s largest growth since 1996.

According to Anuj Chande, current head of the South Asia Group, these recently reported figures may serve as an indicator that the Indian economy is on its way towards recovery from the devastating 2008 recession.

Due to these figures—which were released at the end of November 2009—economists have raised their estimates for India’s full year gross domestic product growth to about 6.5%. The Indian government on the other hand, expects the country’s economy to increase by 7-8% by the end of the fiscal year in March of 2010.

The country’s $80 billion stimulus package has contributed much to the country’s economic progress. From October 2008 to March 2009, a government-sponsored life support has been implemented on India. Along with the stimulus package comes an estimated $80 billion worth of tax cuts. The stimulus package has greatly contributed to the country’s economic growth. Without it, the economic growth rate for those quarters would have not exceeded a single percent. The stimulus packaged has helped the Indian economy grow 5.8%.

Apart from the stimulus package, a percentage of the country’s economic growth may have been brought about by the country’s increased economic activity. Communication, transportation, hotels, and trade makes up one-third of the country’s economy. For the past few months, these sectors have experienced an increase of up to 7.7%, while private consumption has increased to about 5.6%.