India's Economic Growth Slows in Q1 Amid Election Spending Cuts

India's economic growth slowed to 6.7% in the April-June quarter due to a decline in government spending during national elections. Despite this, it remains the world's fastest-growing major economy. Economists forecast a recovery driven by easing inflation and increased government spending in the coming months.

India's economic growth slowed to 6.7% year-on-year in the April-June quarter, as a decline in government spending during national elections weighed down the numbers, data showed on Friday. However, the country's economy remains the fastest-growing major economy globally.

The rise in gross domestic product (GDP) was below the 6.9% expansion forecast by a Reuters poll and compared to 7.8% growth in the previous quarter. But, it was faster than China's growth rate of 4.7% during the same period. India's slowdown is expected to be temporary, with economists forecasting that easing inflation and a pickup in government spending will boost growth in the coming months.

India's chief economic adviser, V. Anantha Nageswaran, stated that the growth momentum remains strong, driven by robust investment demand and positive business sentiments. He noted that the Indian economy could achieve a sustainable growth rate of over 7% in the medium term if structural reforms continue. Prime Minister Narendra Modi has implemented various measures to invigorate the economy since the recent elections.

(With inputs from agencies.)