India's economic growth slowed to 4.1% year-on-year in the January-March quarter, the slowest pace in a year, official data on Tuesday showed, amid rising risks from higher prices of crude oil and commodities after Russia's invasion of Ukraine.
Economists in a Reuters poll had forecast gross domestic product in Asia's third-largest economy would grow 4% year-on-year in the January-March quarter, compared with an upwardly revised 5.4% in the October-December period and 8.5% in July-September.
"Going forward, while the continued normalization of contact-based service sector, revival in private capex on the back of PLI schemes and 'China plus 1' strategy, government's continued focus on capex and improved rural consumption owing to higher realizations in cultivation income will act as tailwinds, slowdown in global growth, elevated energy prices, rising interest rate cycle and tightening of financial conditions will be key headwinds," said Garima Kapoor, Economist - Institutional Equities, Elara Capital, Mumbai.
"Amid expectation of elevated energy prices through FY23E, we pare down our FY23E GDP growth expectation at 7.5% revised down from 7.8%, she added.
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