RBI deputy: econ recovery gaining strength

NEW DELHI (Reuters) - The recovery of the Indian economy was gaining strength but December quarter numbers could be lower than the 7.9 percent annual growth recorded in the September quarter, a Reserve Bank deputy governor said on Monday.

Subir Gokarn also said food price inflation was a matter of concern and authorities would keep a watch on capital inflows.

Government data showed on Monday the economy grew by 7.9 percent in the quarter through September from a year earlier, shattering market forecasts as stimulus measures boosted demand and manufacturing activity surged.

"While it is a recovery and it seems to be gaining strength, we should not ignore the fact that it is still being driven substantially by public spending," Gokarn told reporters.

(Reporting by Manoj Kumar and Rajesh Kumar Singh; Editing by John Mair)

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