India’s gross domestic product expanded 7.8% in the April–June quarter, outstripping the 6.7–6.9% growth expected in polls by various media organisations and surpassing both the 7.4% pace of the preceding January–March quarter and the 6.5% expansion in the same quarter a year earlier. The print also marked the strongest growth in five quarters, highlighting a renewed pick-up in momentum.The higher-than-expected growth may give space to the RBI to hold on to the repo rate and keep monetary policy stance neutral. There was a clamour building up for a cut in rates amid US tariff hikes and low inflation.
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