New Delhi, August 31

India’s economic growth slowed by more than expected in the quarter to June, as per data released today that will worry Prime Minister Narendra Modi and prompt more urgent calls from his aides for interest rate cuts.

Gross domestic product expanded an annual seven per cent rate in the April to June quarter, government figures showed. That was slower than provisional growth of 7.5 per cent in the previous quarter.

Analysts polled by Reuters expected growth for the quarter to come in at 7.4 per cent, but a weak showing from the services sector acted as a drag on Asia’s third-largest economy.

While India matched growth in China, the loss of momentum comes just as Modi’s image as the country’s economic saviour starts to fade 15 months after his historic electoral triumph.