After sliding for nearly five quarters, country's economy has rebounded from a three-year low to swell by 6.3 per cent in July-September quarter.
The Gross Value Added (GVA) which is the total value of goods and services produced in the country after deducting the input cost accelerated 6.1% in the September quarter from 5.6% in the last quarter.
In July-September, auto sales, manufacturing, electricity generation grew more quickly than in the previous quarter.
While the rebound in GDP growth in the second quarter can act as a "confidence booster" for the economy, the slowdown in the services sector, including finance, transport and hotels, as well as in agriculture is cause for concern, according to industry bodies and consultants.
Striking a note of caution, the Congress also said the rebound in economic growth is nothing but what it called the Modi governments "desperate spin to hide its luminous underperformance".
"Indias economic stress continues; GDP far below at 6.3 pc compared to 7.5 pc of Q2 of past year! - a close scrutiny reveals the real picture of the economic mess created by BJP Government", he said in a statement.More news: Delhi most unsafe, tops crime chart among 19 major cities
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He said the government reforms to push economic growth are working can be seen from the robust growth of seven percent in manufacturing and 7.1 percent in services in the second quarter of this fiscal.
Finance Minister Arun Jaitley has said, the GDP rate at 6.3 percent marks the reversal of declining trend in the last five quarters.
Jaitley further said that impact of demonetisation of high value currency notes of Rs 500 and Rs 1000 in November previous year was limited to one or two quarters. The growth in public administration, defence and other services also stood at 6 per cent.
"The GST impact was only for one quarter mainly because of destocking".
"What is encouraging is that manufacturing has emerged as a key driver of growth indicating that firms have started restocking and recovery is taking shape".
Government spending slowed in the quarter, growing 4.1 per cent, as against 17.1 per cent in the June quarter.
Moody's had upgraded India's sovereign credit rating for the first time in 14 years on account of progress in economic and institutional reforms boosting growth potential.