Springtime surge boosts India’s booming economy

India's economy expanded at its fastest pace in more than two years over the spring.

Figures published today in New Delhi showed output was 8.8% higher in the three months to June than in the same period last year.

Although India is only the world's 11th biggest economy, it is the second-fastest growing behind China.

The potent pace of growth between April and June followed expansion of 8.6% in the previous quarter and was driven by manufacturing, car sales and mining.

The Reserve Bank of India expects growth for the full year to be 8.5%. It has raised interest rates four times this year in a bid to curb inflation, which topped 11% last month.

Dipankar Mitra, an economist at Motilal Oswal Securities in Mumbai, said: "Inflation will continue to be a challenge for policy makers in India.

"Though global uncertainties are increasing, India is better placed to counter them due to strong domestic demand," he said.