Indian Economy: Growth -3

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[url="http://finance.yahoo.com/news/Indias-economy-grows-at-apf-1347952416.html?x=0&sec=topStories&pos=9&asset=&ccode="]India's economy grows at fastest pace in 2 years[/url]

India economy grew 8.6 percent in Jan-Mar quarter, best in 2 years as manufacturing rebounds

Investment as a share of gross domestic product rose to 34.6 percent during the March quarter, government data showed. That's far higher than it was in the 1990s, when it hovered near 22 percent of GDP, and close to its peak of 37 percent not long before the global recession, Joshi said.



Europe, India's most important export market, could drag on India, especially if its debt crisis undermines global growth.



Joshi calculates that only about 7 percent of investment comes from abroad. Still, if foreign funding -- which Indian companies have used to feed their growing appetite for overseas acquisitions -- dries up, domestic sources will be stretched, he said.



"We are more connected to Europe than ever, but we have our own strengths," he said.



From 2003-2008, economic growth averaged 8.8 percent a year, before slumping to 6.7 percent last fiscal year as the Great Recession roiled India's economy.



India's prime minister Manmohan Singh says the billion-plus nation needs to grow at 10 percent a year to eradicate chronic poverty.

Good news.