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Indian economy surprises with return to 8% growth

Relief for Modi as side effects of shock policies ease

Despite a fall in the value of the rupee and a rise in inflation, India's economy is growing at a faster clip than China.    © Reuters

NEW DELHI -- India's economic growth accelerated to more than 8% in the April-June quarter, a better-than-expected result that is underpinned by robust manufacturing and expansion in the construction sector.

The data released on Friday comes as a relief to the government of Prime Minister Narendra Modi, which has taken flak for two ambitious but disruptive policies -- taking high-value bank notes out of circulation in November 2016 and implementing a new goods and services tax in July 2017. The moves temporarily slowed the growth of Asia's third-largest economy.

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