India Growth Beats Estimates After Rate Cut to Aid Spending

India’s economy grew more than estimated last quarter after the central bank cut interest rates to support spending at home. Bonds fell while the rupee and stocks pared losses.

Gross domestic product rose 5.5 percent in the three months through June from a year earlier, compared with 5.3 percent in the previous quarter, the Central Statistical Office said in a statement in New Delhi today. The median of 39 estimates in a Bloomberg News survey was for a 5.2 percent gain.

The data may fail to ease pressure on Prime Minister Manmohan Singhto revive a development agenda hampered by graft allegations and political gridlock, as price pressures limit the central bank’s room to cut rates further. India and BRIC peers China, Russia and Brazil are relying more on domestic demand to support expansion, with Europe’s slowdown crimping sales abroad.

via Bloomberg

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