India | Q2 GDP growth slows as investments dip

India’s Q2 2016 real GDP registered slower growth at 7.1% y/y from 7.9% in 1Q16, weighed by protracted investment weakness, which offset robust consumption demand. With the recent pickup in inflation expected to be transient, and India's reform momentum gaining traction, we foresee room for a final 25 bps rate cut by the RBI when inflation abates towards the end of 2016.

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