India’s economic growth slows in Q1
The Central Statistics Office today revealed India’s economic growth slowed in the first quarter.
According to official figures, the economy grew 7.8% in the January to March period, down from the 8.3% growth in the fourth quarter and lower than the 8.2% expected by economists.
Meanwhile, for the full fiscal year 2010/11, the economy grew 8.5% – roughly in line with the Government’s forecast of 8.6%.
The Indian economy, which is the world’s second fastest-growing major economy behind China, faces headwinds – the country’s inflation rate is the highest among the Group of 20 leading nations, due to soaring food costs.
Annual food inflation has surged, causing major problems for the 450 million people who live below the poverty line in the country.
In a bid to tame inflation, the Reserve Bank of India (RBI) has raised interest rates nine times in the last 14 months and the consensus is for a 25 basis point rise on 16 June when the bank has its next meeting.