Indian economy will struggle through Narendra Modi's second term

Without serious reforms, recent run of bad news set to continue

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Customers check out a Suzuki Baleno hatchback at a showroom near Mumbai: auto selling declined over 20% in the April-June quarter. (Photo by Takafumi Hotta)

At the end of this week, the second Narendra Modi government will complete 100 days in office. It is a period that Modi may want to forget, replete as it has been with a steady drip of downbeat economic news.

Quarterly economic growth has hit a six-year low at 5%, down from 8% a year earlier and lower also than China's 6.2%. For a government given to bragging that it runs the world's fastest-growing large economy, this is a serious embarrassment.

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