India's economy grew faster than expected in the April to June quarter, easing concerns that the war in Iran might seriously weaken economic growth, and also highlighted the resilience of Asia's third-largest economy. According to data released by India's Ministry of Statistics and Planning Implementation on Monday, in the first quarter of this fiscal year, which began in April, GDP grew 7.8% year on year. Higher than economists' median estimate of 7.3%, but at the same rate as the 7.8% growth rate in the previous quarter. The Bank of India previously expected the economy to grow by 7% in the April to June quarter, and expected the economy to grow by 6.7% this fiscal year. Stronger economic growth may complicate interest rate prospects. The Bank of India kept the benchmark interest rate unchanged at 5.25% in August, but policymakers have given signals that if inflationary pressure intensifies, interest rate hikes may be needed later this year.

India's economy grew faster than expected in the April to June quarter, easing concerns that the war in Iran might seriously weaken economic growth, and also highlighted the resilience of Asia's third-largest economy. According to data released by India's Ministry of Statistics and Planning Implementation on Monday, in the first quarter of this fiscal year, which began in April, GDP grew 7.8% year on year. Higher than economists' median estimate of 7.3%, but at the same rate as the 7.8% growth rate in the previous quarter. The Bank of India previously expected the economy to grow by 7% in the April to June quarter, and expected the economy to grow by 6.7% this fiscal year. Stronger economic growth may complicate interest rate prospects. The Bank of India kept the benchmark interest rate unchanged at 5.25% in August, but policymakers have given signals that if inflationary pressure intensifies, interest rate hikes may be needed later this year.