India's growth forecast cut to weakest since pandemic

Investing.com -- The Indian government has revised its economic growth projection for the fiscal year to be the lowest since the pandemic hit, as consumer spending and public investment have both slowed down.

The Statistics Ministry announced on Tuesday that the Gross Domestic Product (GDP) is expected to grow by 6.4% in the year through March, a decrease from the 8.2% growth experienced in the previous financial year. This figure aligns with the median forecast from a Bloomberg survey of economists, but falls slightly short of the government's previous estimate of 6.5% made last month.

This revision underscores concerns that India's once world-leading growth is slowing down, which could pose challenges for Prime Minister Narendra Modi's ambitious plans to transform India into a developed economy and generate employment for the millions of young individuals entering the workforce each year.

Over the course of this fiscal year, consumers have reduced their spending due to declining wages and rising inflation, which has in turn affected profits for some of the country's major retailers. Household and business spending, which constitutes approximately 60% of India's GDP, has seen a significant decrease. Furthermore, the government has failed to meet its budgeted expenditure this year, partially due to the elections that spanned several weeks, further stifling growth.

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Source: Investing.com