India lost its spot as the fastest growing major economy to China, clocking a disappointing 5.8% in the January-March quarter as a chill in domestic and global consumer demand hit manufacturers and service providers.
The sub-6 percent growth of Q4 is the slowest in five years.
The economy had grown 6.6% in the third quarter, 7.1% in second and 8.2% in the first quarter.
Q4 GVA at 5.7 per cent.
Weaker domestic consumption, waning global growth and an escalating U.S.-China trade war is key factors behind the sub-7 percent growth. Growth has fallen below China for the first time.
The country has underperformed in the manufacturing sector though emerging as the world’s sixth-biggest auto manufacturer, and expanding production of smartphones.
In the first bi-monthly policy of RBI, GDP growth for 2019-20 is projected at 7.2 per cent – in the range of 6.8-7.1 per cent in H1:2019-20 and 7.3-7.4 per cent in H2 – with risks evenly balanced.
India's April-June economic growth rate could be "relatively slower", Finance Secretary Subhash Chandra Garg said, after Asia's third-largest economy recorded the slowest pace of GDP growth in 17 quarters for the first quarter of 2019.
Garg said that India's growth rate, which has been hit due to weak consumption demand and private investment, will start turning around from the July-September quarter with favourable interest rates and an improvement in liquidity.