India's economy has beaten expectations by growing at a rate of 9.2% in the July-September quarter of 2006.
Analysts said the economy was in a "sweet spot"
Services including real estate and communications led with a healthy 13.9% increase in the quarter, the Central Statistical Organisation said.
Manufacturing came in second, with 11.9% growth during the same period.
Asia's fourth-largest economy has grown at an average of 8% in the last three years. But critics say the benefits have not reached the poor fast enough.
Analysts said the second quarter performance had exceeded expectations.
"It is definitely better than expectations, with the surprise coming from the manufacturing and services sectors," Rajeev Malik, an economist with JP Morgan, told Reuters news agency.
The director of the Indian Council for Research In International Economic Relations said the economy was doing well.
"We are in a sweet spot with high consumption and investment demand. The Indian economy has got the momentum it needs," Rajiv Kumar said.