India’s economy grew at a faster pace than expected in the April to June quarter, official data showed today, as buoyant domestic demand helped offset the impact of the Iran war.<\/p>\n
Gross domestic product rose 7.8% in the three months to June from the same time a year earlier, helped by a robust services sector, according to data from the statistics ministry.<\/p>\n
While this was down from a revised 8.6% recorded in the previous quarter, it was still above market expectations of 7.3% growth.<\/p>\n
India’s economy “has sustained growth momentum despite global headwinds”, the statistics ministry said in a statement.<\/p>\n
Today’s reading cements India as the world’s fastest growing major economy, and will be welcome news for Prime Minister Narendra Modi’s government, which has been grappling with political setbacks and a series of delicate policy challenges.<\/p>\n
The year kicked off on a strong note for India, with robust economic growth and progress on a much-delayed interim trade deal with the US.<\/p>\n
That momentum, however, quickly stalled with a stalemate in talks with Washington. The Iran war has also raised energy costs as well as India’s import bill, stoking inflation.<\/p>\n
New Delhi depends heavily on imports for its oil and gas needs, making it particularly vulnerable to the global energy shock caused by the conflict.<\/p>\n
Initial assessments of the Mideast turmoil prompted India’s central bank to cut growth projections for the current fiscal year. The projections were later revised upwards.<\/p>\n
The Indian government has so far shielded citizens from the worst of the war’s economic impact with limited and staggered fuel price hikes.<\/p>\n
But analysts warn that this may not hold given renewed tensions in the Mideast and consistently elevated global crude prices.<\/p>\n
Sweeping consumption and income tax cuts last year have also helped boost domestic demand and protected India’s economy from geopolitical tensions, including US President Donald Trump’s tariff blitz.<\/p>\n","protected":false},"excerpt":{"rendered":"India’s economy grew at a faster pace than expected in the April to June quarter, official data showed…\n","protected":false},"author":2,"featured_media":610270,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60],"class_list":["post-610269","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-ie","tag-ireland"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/610269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=610269"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/610269\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/610270"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=610269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=610269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=610269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}