Economy is hurting, nation may feel pain
India’s economy grew at its slowest annual pace in almost six years in the December quarter, throwing into doubt growth estimates for the full fiscal year and raising expectations the central bank would soon cut rates.
The slower-than-expected growth in Asia’s third-largest economy saw a weak sharemarket extend losses to more than 2 percent, and analysts said the central bank could cut rates as early as Saturday.
The economy grew 5.3 percent in the December quarter from a year earlier, below forecasts of 6.2 percent and the previous quarter’s 7.6 percent as the global economic crisis cut demand and exports. It was the slowest growth since the March quarter of 2003.