India is expected to expand by 7.1 per cent year on year in the January-March quarter, just up from seven per cent in the prior quarter and ahead of China’s 6.9 per cent growth rate.

Some even expect a growth rate as high as 7.8 per cent.

The impact of GST is not clear -- some items are expected to be cheaper -- but the prospect of a price rise is seen pushing some people to buy ahead of July. Shoppers are bringing forward spending into the current quarter looking to avoid rates of 28 per cent, or higher, on some consumer durables and luxury items.

Layoffs in the information technology sector are unsettling some households at a time when the economy is still not generating enough new jobs for a workforce that is growing by around a million people a month.

Millions are thronging shopping malls and stores in India, thanks to a busy wedding season. In Asia’s third largest economy consumer spending has been traditionally a driver of growth.

Car sales, retail lending and goods imports show consumer spending has roared back to life after the November shock.

With a good monsoon and government pay hikes in prospect, the outlook for a sustained recovery looks good.