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Assessing the latest economic growth data from India, “India’s Q1 FY20 (April-June 2019) GDP growth has slipped to the lowest in 25 quarters,” noted ANZ analysts.  “This is the first time since March 2013 that growth has been sub-6% for two consecutive quarters.”

Key quotes

“Compared to the previous quarter, domestic demand slowed sharply, led by private consumption. Net exports contributed positively to growth for the first time in nine quarters on lower imports, underlying weak demand.”

“High frequency indicators continued to show sluggishness in July, suggesting the slowdown may have some steam left. Today’s weaker-than-expected growth print reaffirms our call for further 50bps of cuts by the Reserve Bank of India (RBI) in the rest of the year.”

“Additionally, the structural nature of the slowdown could prompt the government to announce a fiscal push as a supplement to monetary easing, in order to lift sagging demand.”