New Delhi: Indian economy growth slowed to 7.1 per cent in the first quarter of the current fiscal 2016-17 due to contraction in mining and a sluggish farming.
This is the slowest growth in last six quarters and below government’s expectation of eight per cent in current fiscal.
A less than expected growth will put pressure on incoming RBI governor Urjit Patel to cut interest rates and stimulate investment. But India retained the title of the world’s fastest-growing large economy ahead of China.
The finance ministry expressed confidence that good monsoon and impact of pay commission award will push the economic growth close to eight per cent in the current fiscal. GDP had grown by 7.5 per cent in the April-June quarter of last fiscal and 7.9 per cent in preceding quarter of this year.
