India’s economy expanded a stronger-than-expected 7.8% in the April-to-June quarter, reinforcing its position among the world’s fastest-growing major economies despite higher energy costs and global trade disruption. Yet growth has moderated from the previous quarter, while investor enthusiasm for Indian equities remains surprisingly weak. What is driving the economy’s resilience, where are the vulnerabilities emerging, and is India growing quickly enough to fulfil Prime Minister Narendra Modi’s ambition of becoming a developed nation by 2047?

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