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Saturday , December 7 2019

India no longer world’s fastest-growing economy

NEW DELHI (Reuters) – India’s economy grew at its slowest pace in more than four years in the January-March period, falling behind China’s pace for the first time in nearly two years and raising the prospect of fiscal stimulus and a rate cut.

Asia’s third largest economy grew at a much slower-than-expected 5.8% in the last quarter, compared with 6.4% in China, government data showed on Friday. The figures were released as Prime Minister Narendra Modi started his second term.

A Reuters poll of economists had forecast a growth rate of 6.3 percent for the March quarter, compared with a 6.6% rise in the October-December period in 2018.

Devendra Kumar Pant, chief economist at India Ratings & Research in New Delhi, said there were signs of a further slowdown in the economy.

“The government has a very limited fiscal space. However, current economic conditions call for some stimulus,” he said.

Asia’s third largest economy grew at a much slower-than-expected 5.8% in the last quarter, compared with 6.4% in China, government data showed on Friday. The figures were released as Prime Minister Narendra Modi started his second term.

A Reuters poll of economists had forecast a growth rate of 6.3 percent for the March quarter, compared with a 6.6% rise in the October-December period in 2018.

Devendra Kumar Pant, chief economist at India Ratings & Research in New Delhi, said there were signs of a further slowdown in the economy.

“The government has a very limited fiscal space. However, current economic conditions call for some stimulus,” he said.

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