India Q1 GDP growth slows to 7.1%

According to a Reuters poll of 58 economists, India's gross domestic product (GDP) expanded 7.1% year-on-year in the April-June quarter, slowing from a better-than-expected 7.8% in the previous quarter. The slowdown was attributed to more subdued private investment, though growth was supported by consumer spending and government expenditure. Risks to the outlook have increased as crude oil prices remain above $90 a barrel, and the India — Indian rupee has weakened more than 6% against the United States — United States dollar this year. Economists forecast growth to lose momentum in coming quarters, with GDP expected to slow to 6.6% this quarter and 6.5% next, averaging 6.7% for the fiscal year, in line with State Bank of India projections. The RBI is predicted to keep interest rates unchanged for at least six months. India remains the world's fastest-growing major economy.