Slower manufacturing, investment cited as growth constraints
Government and RBI differ on causes of demand slowdown
India might trail budget gap estimate for this fiscal year

NEW DELHI, Jan 7 Reuters India forecast annual growth of 6.4 in the year ending in March, the slowest in four years and below the lower end of government39;s initial projection, dragged by a weaker manufacturing sector and slower corporate investments.

India39;s had initially projected a growth rate of 6.57.

The forecast by the National Statistics Office NSO follows several disappointing economic indicators in the second half of 2024 including low growth, high inflation, anaemic capital flows and a record trade gap  that cast doubt on the robustness of the country39;s growth.

Last month, the Reserve Bank of India lowered its growth forecast for the year ending March 2025 to 6.6, from its earlier forecast of 7.2, after India reported lowerthanexpected growth of 5.4 in JulySeptember, its slowest pace in seven quarters.

The full year projection suggests growth will revive somewhat in the second half of the year to 6.7, said Aditi Nayar, chief economist at rating agency ICRA.

In nominal terms, which include inflation, the economy is expected to grow 9.7, compared with the 10.5 estimate in the annual federal budget announced in February 2024.

Nayar added that given the slowdown in government spending earlier this year, India might trail its budget gap estimate of 4.9 for the current financial…