Indian Q2 GDP likely to be as good as it gets for some time

Today’s Q2 GDP data for India, which show that the economy grew at its fastest pace since Q1 2012, come as welcome news. But we suspect that this might be as good as it gets for some time. Both fiscal and monetary policy look set to remain tight, while hopes that Prime MinisterNarendra Modi would make a concerted early push on structural reform have been disappointed. As such, growth is unlikely to exceed more than 5-5.5% over the next couple of years.

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