Economics
The World’s Fastest-Growing Economy Looks Like It’s Got Momentum
- New orders picked up in June as bank loan disbursals grew
- Growth recovery to push inflation higher, may prompt rate hike
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The world’s fastest growing major economy is showing signs of a recovery in animal spirits, suggesting India’s mid-term outlook can weather global trade tensions and emerging market strains.
A cross section of forward-looking indicators compiled by Bloomberg News show largely positive signs. Sentiment in the manufacturing and services sectors -- both of which make up nearly 80 percent of the $2.6 trillion economy -- rebounded in June, with new orders picking up pace. Bank loan disbursals are growing while auto sales -- a barometer of overall demand -- are expanding at double-digits.