Hyderabad: The Indian economy, Asia's third-largest, is set to expand by nine per cent in the second half of the financial year ending March 2004, the deputy head of the National Planning Commission said today.

"It is expected to grow by nine per cent in the remaining two quarters," commission Deputy Chairman K C Pant told a business seminar.

The economy expanded by a robust 8.4 per cent in the July-September quarter, the second quarter of the fiscal year. It grew 5.2 per cent in the corresponding period last year.