India’s GDP Cannot Grow Fast In The Short Run

In an environment of subdued global growth and weak investments, India’s GDP cannot grow fast in the short run. For fiscal 2018 as a whole, we are in the process of revising down of our GDP growth forecast down from 7.4% stated earlier.That said, normal monsoon, softer interest rates and inflation, and pent-up demand will support consumption growth in the remaining quarters. There will also be a mild push to consumption from budgetary announcements.