Slow GDP growth due to lower govt spending, MCC, says RBI Governor Das

The slowing of India's economic growth to a 15-month low of 6.7 per cent in the April-June quarter was due to "lower" government spending in the wake of the enforcement of the model code of conduct for the recent Lok Sabha polls, RBI Governor Shaktikanta Das said here on Saturday.

The RBI had projected a growth rate of 7.1 per cent for the April-June quarter of this fiscal.

"The Reserve Bank projected a growth rate of 7.1 per cent for the first quarter. However, the first advance estimation data released by the National Statistical Office showed the growth rate at 6.7 per cent," Das told reporters here.

The components and main drivers responsible for the GDP growth like consumption, investment, manufacturing, services and construction have registered a growth of more than 7 per cent, he said.

Only two aspects have pulled the growth rate slightly down. Those aregovernment (both central and state) expenditure and agriculture, the RBI governor pointed out.

He said the government ...