Beating expectations: Recent reforms will improve the business environment

India's GDP surged 8% in the first half, defying global headwinds, but weak nominal growth and slowing tax revenues raise fresh questions ahead of the MPC's policy review

The Indian economy grew at a much faster pace than expected in the first half this financial year. The data released last week showed that gross domestic product (GDP) expanded by 8.2 per cent at constant prices in the second quarter, taking first-half growth to 8 per cent, up from 6.1 per cent last year. The Reserve Bank of India (RBI) had projected a growth rate of 7 per cent for the second quarter. Growth was supported by increased activity in segments such as manufacturing, which grew 9.1 per cent, and construction, which went up 7.2 per cent. The tertiary