A sharp fall in India’s economic growth to 6.1 per cent in the quarter to the end of December, the slowest in three years, has triggered fears of a prolonged decline unless emergency steps are taken this month.
A slowdown in manufacturing and mining has accelerated the shift of Asia’s third-largest economy to lower growth after a failed push to hit double digits. A collapse in investment has increased expectations that the Reserve Bank of India may cut benchmark lending rates at its next policy review meeting on March 15.
Rajiv Kumar, director-general of the Federation of Indian Chambers of Commerce and Industry, said that yesterday’s “sobering” gross domestic product data put an official target of 6.9 per cent growth for the full fiscal year out of reach and a bounce back next year in doubt.