- Economic growth in India was 8.2% in the second quarter.
- That beat expectations for 7.6% growth and surpassed previous quarter GDP of 7.7%.
- A strong manufacturing sector and isolation from ongoing trade tensions helped power growth, analysts say.
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India keeps its crown as the fastest-growing major economy in the world
India's economy expanded more than 8% between April and June from a year earlier, as a surge in manufacturing activity and spending powered the world's sixth-largest economy to its fastest growth in more than two years.
India's economy expanded more than 8% between April and June from a year earlier, as a surge in manufacturing activity and spending powered the world's sixth-largest economy to its fastest growth in more than two years.
Gross domestic product in the country grew 8.2% year-over-year last quarter, according to government data out Friday, up from 7.7% in the first three months of 2018. Analysts had forecast 7.6% growth. India is the world's fastest-growing economy and expanding more quickly than China, which reported 6.7% economic growth in the second quarter.
CLSA analyst Christopher Wood noted resilience in the Indian stock market could signal the economy is accelerating at a time when many other markets in Asia may be near cyclical peaks. Isolation from an ongoing global trade war could be behind recent strength, he added.
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"One reason why is that India, as primarily a domestic-driven economy, is clearly much less exposed to Trump-driven trade concerns," Wood said.
Growth also surpassed forecasts by the Reserve Bank of India, which has been grappling with a broad emerging market currency sell-off that has helped send the rupee to all-time lows. The central bank raised its benchmark rate by 50 basis points to 6.5% at its past two policy meetings.
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