India’s GDP Growth above the estimates amid recession

India’s economy grew more than estimated in the last quarter, making it easier for re-elected Prime Minister Manmohan Singh to steer the country through the global recession.

Asia’s third-largest economy expanded 5.8 percent in the three months to March 31, led by government spending and construction, the statistics office said in New Delhi today. Economists were expecting a 5 percent increase.

Stocks and the rupee climbed on investor optimism that interest-rate cuts and fiscal stimulus worth 7 percent of gross domestic product have helped shield India from the worldwide economic slump. Finance Minister Pranab Mukherjee pledged this week to boost outlays on new roads, ports and other infrastructure even further in July’s budget.