What to expect in 2018

In our final Watch of this year, we outline the prospects for India’s economy in 2018. We expect growth to accelerate, due to a pick-up in private consumption as well as looser fiscal policy. However, inflation is also likely to continue rising, which could force the RBI to shift the debate towards policy tightening in the second half of the year. Meanwhile, with Prime Minister Modi facing his busiest year of state elections and with the 2019 general election on the horizon, the government is likely to shelve politically-difficult reform over the coming months.