India Growth Hits 5.7% Strongest in Two Years

India’s economy expanded at a 5.7% annual rate in the second three months of 2014, busting a long streak of quarters when growth failed to impress.

This is the strongest quarterly growth in over two years and it comes as the first 100 days of Narendra Modi’s term as prime minister come to a close.

Modi has eagerly attacked the myriad of challenges facing Asia’s third biggest economy, whose annual growth failed to top 5% last year.
Meanwhile, investors have been optimistic that Modi’s efforts to pull India out of its malaise will succeed.

The Indian rupee has strengthened by more than 2% so far this year versus the U.S. dollar. The benchmark Mumbai Sensex index has increased by 26% over the same period.

In India, structural reforms have run afoul of political gridlock. Analysts say India needs to simplify its tax code, encourage foreign investment and streamline agricultural production.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza