India's economy grows by 8.4% amid signs of recovery

India's government say the country's economy grew by 8.4% in the July-September quarter from the same period a year earlier

NEW DELHI -- India’s economy grew by 8.4% in the July-September quarter from the same period a year earlier, the government announced Tuesday, raising hopes of a recovery after the country suffered historic contractions sparked by the coronavirus pandemic.

India, Asia’s third-largest economy, suffered one of the biggest setbacks among major economies in the last fiscal year.

In the same quarter a year before, the economy contracted by 7.4%, badly hit by rising COVID-19 cases and a stringent nationwide lockdown, with restrictions lasting months that dealt a huge blow to economic activity.

After being hit by a devastating surge in virus cases stoked by Delta variant earlier this year, the situation in India has improved in recent months. Daily cases have sunk dramatically to about 10,000 after breaching 400,000 in May and the vaccination pace has picked up, instilling confidence in reopening businesses and industries. Streets and markets across the country are now abuzz with activity.