State Spending Masks Weakness in Indian Economy

As countries around the world saw their economies crumble in the past year, Indians took solace in the fact that their country had escaped relatively unscathed. With two successive quarters of 5.8% growth, India's economy bested much of the world by expanding 6.7%—a low number for its once red-hot economy, but far better than those of the U.S., Germany and even Japan, who all saw their economies contract. And with optimism growing about a turnaround in the global economy, many Indians are confident that things are looking up.

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