India’s economic growth slows as rising prices hurt

India has reported weaker-than-expected growth numbers for the first three months of the year.

The country’s economy grew by 7.8% in the first quarter compared with the same period last year, the latest government figures showed.

For the financial year to March, the economy grew by 8.5%, lower than the government’s forecast of 8.6%.

India is one of the fastest-growing economies in the world, but has been hit hard by rising consumer prices.

Analysts say a surge in prices of essential commodities, coupled with measures to cool the economy, has started to take a toll on growth.

“Raging inflation and a gradual increase in borrowing costs has dampened domestic demand, alongside lacklustre investment sentiment,” said Radhika Rao of Forecast Pte.

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Categories: India

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