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India's growth may decelerate further

March 05, 2019 00:00:00


Billions of dollars of pre-election spending by the Indian government and political parties in the next two months is unlikely to stop the nation's economy from slowing further, economists said, reports Reuters.

India’s economy lost momentum in the final quarter of 2018, as the annual rate of growth slipped to 6.6 per cent, much lower than expected and the slowest pace in five quarters. But the worst may not be over. Prime Minister Narendra Modi in an interim budget last month introduced populist spending measures worth Rs 1.8 trillion ($25.37 billion) and modest tax cuts in the current fiscal year ending March 31 in an attempt to win the votes of farmers and the urban middle class.


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