Warning issued over Indian economy

<p>India has sharply cut its growth forecast.</p>

The Indian economy's growth is set to slow down later in the year, according to official projections revealed by the country's government.

It was announced that growth for the current financial year is now expected to be 5.3 per cent, which is a major drop from the previous prediction of 6.4 per cent.

The Indian Prime Minister's economic advisory panel explained that containing the fiscal deficit within the target of 4.8 per cent of the Asian nation's gross domestic product (GDP) "could be a challenge".

It was also pointed out by the group that the fiscal deficit during the first four months of the current financial year has already reached 62.8 per cent of the country's budgetary provision for the full year.

Chandrajit Banerjee, director-general of the Confederation of Indian Industry, recently stated the latest economic data for India is leading to concerns over the level of growth this year.

However, he stressed that there is no need to be "alarmist" at this time.

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