India: Sharp rise in growth rate

The Indian economy grew faster than expected in the first part of 2005. The rise was due to a sharp rise in industrial exports and buoyant domestic demand.

India’s economy grew 8.1% in the three months to June, well ahead of the 7% rise seen in the previous quarter.

Rapid growth in manufacturing and business services, such as outsourcing, offset a small rise in agriculture.

India’s huge industrial capacity and growing affluence have made it one of the world’s fastest-growing economies.