India's growth to regain traction by year-end

India’s Q2 GDP data will be released on Tuesday and are likely to show that growth slowed. We forecast growth of 7.5% y/y in Q2, down from 7.8% in Q1. Monthly output data suggest that the slowdown will have been led by the manufacturing sector. Nonetheless, we expect GDP growth to pick up again by year-end, with household spending and investment likely to be the bright spots in the coming quarters.

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