IndiaÃ¢â‚¬â„¢s economy will grow at its slowest rate in three years in the fiscal year ending in March, according to an outlook released on Tuesday by the governmentÃ¢â‚¬â„¢s central statistics office.
The office revised its estimate for GDP growth for the year to 6.9 per cent. If the number is confirmed, it will mark a strong decline from last yearÃ¢â‚¬â„¢s 8.4 per cent.
Industrial production and foreign investments contracted, the rupee was AsiaÃ¢â‚¬â„¢s worst-performing currency, and the countryÃ¢â‚¬â„¢s current account and fiscal deficits increased.
Manufacturing is expected to grow by just 3.9 per cent in the year to March compared with 7.6 per cent in the previous year. Agriculture is set to grow by 2.5 per cent, compared to 7 per cent in the previous year. Mining is set to contract by 2.2 per cent, compared to 5 per cent growth a year earlier.
Some economists say that next yearÃ¢â‚¬â„¢s growth is expected to remain in line with this year, since they are not expecting significant uplift in consumption or investment demand Ã¢â‚¬â€œ the core trends that are needed for growth.
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