India defies Iran war oil shock to keep 8% growth on track

India’s stronger-than-expected first quarter growth has bolstered analysts’ confidence that it can sustain its momentum through the rest of the financial year and remain the world’s fastest-growing major economy – even as it remains exposed to high oil prices caused by the Iran-war" class="entity-link entity-event" data-entity-id="107864" data-entity-type="event">US-Iran war.The Indian economy grew 7.8 per cent in the April-June quarter, comfortably beating the India" class="entity-link entity-organization" data-entity-id="121066" data-entity-type="organization">Reserve Bank of India’s forecast of 7 per cent growth, despite the disruption that the Middle East conflict has caused to global energy markets and financial sentiment worldwide.“While energy will undoubtedly be a headwind for the economy, I suspect that it will sustain the momentum … and surprise analysts on the upside,” said Jamus Lim, an associate professor of economics at ESSEC Business School Asia-Pacific, who predicted annual growth “clocking in closer” to 8 per cent.