India's economy clocked its slowest quarterly growth in over five years at 5.3 per cent, throwing into doubt the government's growth estimates for the full fiscal year. The economy had, in the same period a year ago, registered a whopping 8.9 per cent growth but experts now feel it may find it difficult to achieve the 7 per cent growth the government had in mind for the full year.

The government, however, put up a brave front by saying the third quarterly growth is not much off the mark. "There is still a quarter to go," Minister of State for Finance PK Bansal said.

But that's not going to be easy. According to Sherman Chan, an economist at the global rating agency Moody's, growth will slow down even further, to below 5 per cent. "With the recent deterioration in global economic conditions, it is almost certain that India's growth will slow under 5 per cent in the first half of 2009," he said. Reacting to the numbers, Suresh Tendulkar, chairman of the Prime Minister's Economic Advisory Council, said this could lead to a rate cut from the Reserve Bank of India.

DNA Correspondent/ DNA-Daily News & Analysis Source: 3D Syndication