NEW DELHI: The Indian economic growth has hit a massive low with forecasts showing expansion below 5%, as per reports.
Growth forecasts for the quarter ended September to between 4.2% to 4.7%, according to the economists at Capital Economics Ltd, Nomura Holdings Inc, and State Bank of India.
The data will be published by the Indian government towards the end of November this year.
Sonal Varma, chief economist for India and Asia at Nomura in Singapore, said that the GDP growth did not bottom in and the high-frequency indicators plunged and domestic credit conditions are currently remaining tight amidst the weak global demand.
Since the authorities adopted a new base year for the gross domestic product (GDP) data in 2012, growth of 4.2% is probably the lowest.
In order to boost the economy, the Reserve Bank of India has cut interest rates five times this year, including a tax cut of $20 billion for the companies.
Soumya Kanti Ghosh, the chief economic adviser at State Bank in Mumbai, said that they expect larger cuts from the RBI on December this year.