India's GDP or gross domestic product grew 5.8 per cent in the January-March period, the slowest rate of expansion recorded since the quarter ended June 2017, government data showed on Friday.
That was worse than economists' expectations, and lower than 6.6 per cent in the previous quarter. A survey of economists by news agency Reuters had forecast GDP growth at 6.3 per cent annually in the quarter ended March 31.
Friday's data also meant the economy logged an average growth of 6.8 per cent for the full financial year 2018-19.
The slowdown may lead to another rate cut by the central bank in its June policy review, say economists.
Period "Growth in GDP -- constant prices (2011-12) "
April-June 2018 8.0%
July-September 2018 7.0%
October-December 2018 6.6%
January-March 2019 5.8%
The RBI had in its bi-monthly monetary policy review in April lowered its GDP growth projection to 7.2 per cent in 2019-20, from 7.4 per cent. Citing "evenly balanced" risks, the RBI noted that it expects GDP to grow in the range of 6.8-7.1 per cent in the first half of current financial year, and 7.3-7.4 per cent in the second half.
The Central Statistics Office (CSO) had earlier also projected GDP growth to average at 7.2 per cent in the financial year 2018-19.
Meanwhile, China's economy logged a growth of 6.4 per cent in the March quarter. Friday's official data meant India lost its position as the fastest-growing major economy to China for the first time in one-and-a-half years.
The RBI's monetary policy committee (MPC), which has cut policy rates by 50 basis points this year, is expected to cut the repo rate by a further 25 basis points at its June 4-6 meeting, bringing it to 5.75 per cent, the lowest since July 2010, according to Reuters.
Retail inflation has stayed below 3 per cent for last six months, possibly low enough to take the risk of cutting rates without waiting to seeing whether the monsoon rainy season starting next month holds any danger of a spike in food prices.
That was worse than economists' expectations, and lower than 6.6 per cent in the previous quarter. A survey of economists by news agency Reuters had forecast GDP growth at 6.3 per cent annually in the quarter ended March 31.
Friday's data also meant the economy logged an average growth of 6.8 per cent for the full financial year 2018-19.
The slowdown may lead to another rate cut by the central bank in its June policy review, say economists.
Period "Growth in GDP -- constant prices (2011-12) "
April-June 2018 8.0%
July-September 2018 7.0%
October-December 2018 6.6%
January-March 2019 5.8%
The RBI had in its bi-monthly monetary policy review in April lowered its GDP growth projection to 7.2 per cent in 2019-20, from 7.4 per cent. Citing "evenly balanced" risks, the RBI noted that it expects GDP to grow in the range of 6.8-7.1 per cent in the first half of current financial year, and 7.3-7.4 per cent in the second half.
The Central Statistics Office (CSO) had earlier also projected GDP growth to average at 7.2 per cent in the financial year 2018-19.
Meanwhile, China's economy logged a growth of 6.4 per cent in the March quarter. Friday's official data meant India lost its position as the fastest-growing major economy to China for the first time in one-and-a-half years.
The RBI's monetary policy committee (MPC), which has cut policy rates by 50 basis points this year, is expected to cut the repo rate by a further 25 basis points at its June 4-6 meeting, bringing it to 5.75 per cent, the lowest since July 2010, according to Reuters.
Retail inflation has stayed below 3 per cent for last six months, possibly low enough to take the risk of cutting rates without waiting to seeing whether the monsoon rainy season starting next month holds any danger of a spike in food prices.
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