India’s Slowing Consumer Demand Fuels Calls for Rate Cuts

India’s slowing consumer demand and concerns over the global economy could push the central bank to consider interest rate cuts despite worries over inflation, some economists say.

Factory output slowed and consumers are turning more pessimistic about employment prospects, latest figures show, signs that economic growth may come under pressure, according to economists at Nomura Holdings Inc. and Deutsche Bank AG. High borrowing costs are also dampening overall demand in the economy, holding businesses back from investing and curbing growth, they say.