According to the latest reports, India’s economy grew by 4.6% in the first three months of the year and 4.7% for the year, the gdp growth was below what the economists had expected. The economists expected a growth of 4.8% and 4.9% respectively.
The latest figures that have been reported add more pressure on the newly appointed government to turn the economy around as it marks the second straight fiscal year of sub-5 percent growth for India and has been marked as the worst slowdown in more than a quarter of a century.
The most significant loss was suffered by the manufacturing sector that suffered the biggest drop in the quarter and contracted 1.4% while farm output showed a rise of 6.3% for the first quarter.
Despite facing two years of slow economic growth, the conditions in India have widely been expected to improve following the election of the new Prime Minister Narendra Modi. Modi has said that the growth of the country’s GDP and infrastructure has been marked as his top priority.
Raghuram Rajan, the governor of RBI has said that he expects to work with the government and bring down the inflation rates in India, that have risen after the fall in Indian bond yields.