India central bank, government backing V-shaped recovery

Mumbai

INDIA'S surprising economic strength last quarter will only renew debate over how much its unprecedented cash ban has curtailed growth and how quickly activity will bounce back.

While the Reserve Bank of India (RBI) and the government are backing a sharp V-shaped recovery, analysts including those at the local unit of Moody's Ratings predict a slower turnaround after Tuesday's growth estimates showed India shrugged off the impact of the sudden withdrawal of 86 per cent of its currency with only a brief slowdown.