(MENAFN) According to finance ministry sources, India's economic growth slowed to 5 percent in the third-quarter period, down from 5.7 percent in the previous quarter, Arab News reported.
The figures put pressure on the central bank to cut interest rates, as the sources said that the finance minister and the governor of Reserve Bank of India (RBI) would argue forcefully to lower interest rates.
A growth of 5 percent would be a serious slip back from the previous quarter and falls far short of the 8 percent that Asia's third-largest economy needs to create enough jobs for its growing workforce.
After two years of sub-5 percent growth, India's USD2 trillion economy is struggling to break consistently above that level, which means tax take for the year to end March is now set to miss budget by USD15 billion.
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