India may soon lose its status as the world's fastest-growing major economy, according to economists.
The report noted that Asia's third-largest economy is grappled with a high unemployment rate and inflation — which has been running above the country's central bank tolerance level all year and would continue to be the same way for the rest of the year.
"Even as India remains the fastest-growing major economy, domestic consumption will perhaps not be strong enough to drive growth further as unemployment remains high and real wages are at a record low level," said Kunal Kundu, India economist at Societe Generale, told the publication.
Economists expect the country's growth this quarter to slow sharply to an annual 6.2% from a median forecast of 15.2% in the April-June quarter. It is expected to further decelerate to 4.5% in October-December.
Meanwhile, the Indian rupee pulled back from a record low on Monday due to likely dollar sales from the Reserve Bank of India. The local unit had fallen to a record low of INR 80.12 in the first couple of minutes of trade.
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