India's
economy grew by 5.7% in the three months to June, its fastest pace in
two-and-a-half years, according to an official estimate.
The
economy was helped by strong growth in electricity, gas and water supply, and
financial services, the Ministry of Statistics said.
The
growth figure was higher than analysts had been expecting.
India's
new government has launched policies designed to encourage business investment,
including changes to tax.
Ever
since the Narendra Modi government took charge, business sentiment has
improved
on the ground. Investors have started pumping in money again, capital markets
have been roaring, consumer demand has revived & hiring has picked up.
But
this euphoria is primarily driven by sentiment and more steps would be required
to sustain this optimism.
The
performance of the Modi government as it approaches a hundred days in office -
has been a mixed one.
While
it has initiated measures to minimize tax litigation and opened up defence
manufacturing along with railway infrastructure to attract foreign investors,
it is still to announce big bang reforms that would give a major boost to the
economy.
BBC Business
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