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Macro Comment IndiaModi’s reform agenda necessary to sustain high growth

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In recent quarters, the Indian economy did not perform as well as before. Fixed investment has been falling, while personal consumption spending has been holding up. Our view is that the problems are temporary and that GDP will continue to grow annually by 7.5 percent in the coming years. Additionally, demonetisation continues to throw its shadow over the economy, while Modi's new budget might be too optimistic.

Petter Lundvik

Economist

US and India

pelu16@handelsbanken.se

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