India's economy seen growing at 4.7% in September quarter

New Delhi: India's economy probably expanded at its weakest pace in more than six years in the quarter to September, a Reuters poll showed, as consumer demand and private investment weakened further, and a global slowdown hit exports.

The median of a poll of economists showed annual growth in gross domestic product of 4.7 per cent in the quarter, down from 5.0 per cent in the previous three months and 7 per cent for the corresponding period of 2018.

Economic growth could dip to around 4 per cent in the September quarter, two domestic television channels said on Wednesday, citing government sources.

If the latest figure for expansion of gross domestic product is 4.7 per cent or less, the quarter will have registered the slowest expansion in 26 quarters, since 4.3 per cent in January-March 2013.

Prime Minister Narendra Modi's government has taken several steps, including cutting corporate tax in September, to boost investments and bolster economic growth.

Economists in a Reuters poll predicted the Reserve Bank of India would cut its repo rate for the sixth time in a row, by 25 basis points, to 4.90 per cent at its Dec. 3-5 meeting.

"Agrarian distress and dismal income growth so far, coupled with subdued income growth expectation in urban areas, have weakened consumption demand considerably," said Devindra Pant, chief economist at Fitch arm India Ratings & Research.

"Even the festive demand has failed to revive it," he said, citing data on non-food credit, auto sales and select fast moving consumer goods.

On Wednesday, in a heated parliamentary debate on the economic slowdown affecting jobs, opposition parties said millions of people had lost their jobs and the country faced an "economic emergency".

In her reply, Finance Minister Nirmala Sitharaman said the economy faced a slowdown but no "recession" and cited several government measures to support economic growth.

On Thursday, she sought parliament's approval to spend $2.7 billion in addition to a budgeted 27.86 trillion rupees ($388 billion) in the 2019/20 fiscal year.