India reported its best growth figures for more than a year today as government stimulus measures and record low interest rates boosted Asia's third largest economy.

The 7.9% year-on-year expansion prompted a leading government advisory panel to increase its estimate for the year to March 2010.

The figure easily eclipsed the consensus market forecast of 6.3%.

India's expansion was the strongest quarterly performance since early 2008.

Growth in the September quarter was led by manufacturing, which surged 9.2% while social spending climbed 12.7%, reflecting big government outlays to shield the economy from the international slump.

India has weathered the worldwide downturn better than other nations due to its mainly domestically focused economy.

The economy logged 6.1% growth in the previous quarter to June.

The figures come as the Asian region as a whole has seen stronger growth as it pulls out of the global slump. China grew by 8.9% in the third quarter - the fastest pace in a year.