One key theme has been how well many emerging market economies have held up while the world's biggest economies slow. India's Q2 GDP report fits into that theme. The 8.8% year-over-year growth represents an acceleration from the 8.6% y-o-y pace in Q1. Its strong growth and elevated inflation keeps the door open to additional tightening. The central bank meets on Sept 16 and has already increased rates four times this year.
India, unlike many emerging markets, is not as reliant on exports. They account for less than 20% of the GDP. That said, the most recent data, covering last month, showed exporters increased at the slowest pace since the start of the year and Indian officials have acknowledged it might not reach its export target this year.