The Indian economy has broadly benefitted from the reforms under - taken by the government since it took office in May 2014. We expect the administration led by Prime Minister Narendra Modi to continue to enact incremental reforms over the coming years, which should be positive for the economy. India's real GDP growth rebounded to 6.3% y-o-y in Q2FY2017/18, ending a five-quarter downtrend. We continue to expect the economy to slowly recover over the coming quarters. We forecast real GDP growth to come in at 6.4% in FY2017/18 as the economy benefits from the government's optimisation of the GST system and policies to support state banks and the infrastructure sector. The Reserve Bank fo India (RBI)'s stance will likely stay unchanged over the coming months as inflationary pressures rise amid a slight recovery in growth.