India’s economy will grow at its slowest pace in a decade this fiscal, with tight monetary policy, political gridlock and a weak global economy prompting analysts to slash forecasts, a Reuters poll showed on Thursday.
Even as growth falters, the rupee has been hitting all-time lows against the dollar, the government is struggling with bloated fiscal and current account deficits and inflation has remained stubbornly high, giving policymakers less room to manoeuvre.
GDP in India is now expected to grow 6.3% during this fiscal and by 7.0% next fiscal, down from 7.1% and 8.0% respectively, expected in the April survey.
Growth of 6.3% would be the slackest pace for Asia’s third-largest economy since 2002-2003, when it grew 4.0%.
Growth predictions for India have now been slashed in six consecutive quarterly polls. All of the 17 analysts who contributed to this survey and the last downgraded their growth forecasts for this fiscal year and next.