India’s Economic Growth Slows as Concerns Mount Over Outlook

  • GDP grew 6.7% last quarter, below economists’ forecasts
  • Pressure is building on the central bank to cut interest rates

Spending in rural areas, where about 65% of India’s population live, remains subdued, with a Citigroup Inc. index that tracks rural consumption showing spending hasn’t yet reached pre-Covid levels.

Photographer: Anindito Mukherjee/Bloomberg
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India’s economy grew at a slower pace last quarter than expected, with risks to the outlook mounting and pressure building on the central bank to cut interest rates.

Gross domestic product rose 6.7% in the three months to June from a year earlier, the Statistics Ministry said Friday — the slowest pace in five quarters and below the central bank’s projection of 7.1% for the period. Growth weakened from 7.8% in the January-March quarter.