India loses its place of fast-growing economy

India has lost its place as one of the fastest growing economies in the world after slower than expected growth in the first three months of 2019.

Official data showed the economy grew by 5.8%, which is slower than the 6.4% growth recorded by China and down from 6.6% in the previous quarter .

It was the first set of numbers since Narendra Modi had won a second election victory this month.

During his first term, India has become the fastest growing economy in the world.

But the latest figures, which show the weakest growth rate in 17 quarters, indicate that India's growth rate has fallen behind China for the first time in nearly two years.

Economists were expecting economic growth of 6.3% in the first quarter.

The figures will prompt the government of Prime Minister Modi and the central bank to revive the economy through fiscal measures.

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Unlike China, India's economic growth has been driven by domestic consumption over the last 15 years and the latest data show that consumer demand is lower.

Investment growth was also slower, rising from 10.6% in the previous quarter to 3.6%.

Finance Secretary Subhash Chandra Garg said the next quarter – the three months from April to June – could also be "relatively slower".

But he should start turning around in the third quarter, he said.

"Job crisis"

The Reserve Bank of India is now expected to lower interest rates next month.

Unemployment data, which has been postponed several times, was also released on Friday and indicated a rate of 6.1% for the 2017/18 fiscal year.

"This shows that the job crisis is still present: few new positions are created," said NR Bhanumurthy, a professor at the National Institute of Public Finance and Policy in New Delhi.

There has been no detailed official data on unemployment for several years and Chief Statistician Pravin Srivastava told the press "that it would be unfair to compare it to the past".