India's Q2 GDP slips to 5.3%, more pressure on Rajan to cut rates

India’s Gross Domestic Product (GDP), for the quarter ended 30 September, slipped to 5.3 percent as compared with 5.7 percent in the preceding quarter, mounting the pressure on Reserve Bank of India (RBI) to cut its key lending rate in the monetary policy review next week.

The numbers however came better than 5 percent forecast by a CNBC-TV18 poll.

In the September quarter, manufacturing sector grew 0.1 percent as against 3.5 percent in June quarter. Agricultural growth, during the quarter fell to 3.2 per cent from 3.8 per cent in the preceding quarter.

Indian economy has been growing at sub-5 percent level in the last two fiscal years. A prolonged slowdown in the economy is a major concern for the government and industries.

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India’s GDP grew at 4.7 percent in fiscal year 2014 and 4.5 percent in the fiscal year 2013. The RBI is set to announce its fifth bi-monthly policy review on 2 December.

On Monday, Finance Minister Arun Jaitley is scheduled meet RBI governor, Raghuram Rajan to press government’s demand for a rate cut.