India has weakest quarter of growth in 5 years

In the April-June quarter, India’s growth figures dropped to 5.7%, according to the findings of a poll conducted by Reuters, registering the slowest pace in more than five years. This has been attributed to weak investment growth and sluggish demand. As many as 40% of nearly 65 economists expect an expansion of 5.6% or lower – the most feeble start in the first three months of a fiscal in seven years.

In order to give stimulus to the slumping economy, Finance Minister Nirmala Sitharaman announced a string of reforms such as rolling back recent tax hikes on foreign and domestic equity investors and several measures for industries. Economists at Morgan Stanley are optimistic that these are not efforts in vain. “We believe that the measures announced by the finance minister will help to provide a fillip to credit growth, rate transmission and improving investor sentiment,” noted the agency.