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India's economy grows 5.7% in Q1, best in two years

Published on Aug 29, 2014 11:11 PM
 
A woman labourer eats her lunch inside a steel factory on the outskirts of Jammu August 29, 2014. India said Friday its economy grew by 5.7 per cent in the first financial quarter, its fastest pace in over two years, as the election of a new right-wing government spurred business confidence. -- PHOTO: REUTERS

NEW DELHI (AFP) - India said Friday its economy grew by 5.7 per cent in the first financial quarter, its fastest pace in over two years, as the election of a new right-wing government spurred business confidence.

The strong expansion in the three months to June beat a consensus market forecast of 5.5 per cent growth and marked the clearest sign yet that Asia's third-largest economy is accelerating out of a long slowdown, economists said.

"The economy has bottomed out - this really affirms that the green shoots we've seen are for real," Deepak Lalwani, head of India-focused financial consultancy Lalcap based in London, told AFP.

The first-quarter growth was faster than the 4.6 per cent expansion logged in the previous three months, and was the best performance since the January-to-March quarter in 2012.

 
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