Indian economic growth lags behind China in quarter after Urjit Patel's resignation

India's economy grew at a much-lower-than-expected 5.8% in the January-March period, its slowest pace in 17 quarters, and falling behind China's pace for the first time in nearly two years, government data showed on Friday. The slowdown will put pressure on Prime Minister Narendra Modi's government and the nation's central bank to provide a stimulus for the economy through fiscal measures and interest rate cuts. Modi and his Bharatiya Janata Party have only just been re-elected to a second term with an increased majority.

A Reuters poll of economists had forecast a growth of 6.3% for the March quarter, compared with a 6.6 % rise in the October-December period in 2018. The statistics ministry downwardly revised economic growth for the fiscal year to March 31, 2019, to 6.8% from 7.0% estimated earlier.

Interestingly, Urjit Patel, former governor of RBI, resigned on December 11, 2018, just before the start of the quarter, after reports of differences with central government surfaced.