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.