Thanks to manufacturing, services sectors, Indian economy gathers momentum

Activity in India's dominant services industry rebounded in June from a mild contraction the prior month, expanding at its quickest pace in a year

The world’s fastest growing major economy is showing signs of a recovery in animal spirits, suggesting India’s mid-term outlook can weather global trade tensions and emerging market strains.

A cross section of forward-looking indicators compiled by Bloomberg News show largely positive signs. Sentiment in the manufacturing and services sectors — both of which make up nearly 80 percent of the $2.6 trillion economy -- rebounded in June, with new orders picking up pace. Bank loan disbursals are growing while auto sales — a barometer of overall demand -- are expanding at double-digits.

The RBI is optimistic about growth and a