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Wed 09 Sep 2010Indian economy grows 8.8 per cent

INDIA’S ECONOMY grew a brisk 8.8 per cent year-on-year in the June quarter – its fastest pace since early 2008 – highlighting the strength of the economy in spite of the impact of high inflation on consumer spending.

The performance will encourage the Reserve Bank of India to persist with its aggressive monetary tightening to control inflation, which has dropped slightly to 9.97 per cent in July from a double-digit peak, but remains uncomfortably high.

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