India’s Q2 GDP results again stayed behind expectations. The preliminary year-over-year quarterly growth of 4.5 percent marks a six-year low. The previous quarter's growth of 5.8 percent (since then downgraded to 5.1 percent) had already cost India the title of fastest growing economy in the world. In Q1 of 2019, China grew its economy by 6 percent and therefore faster than India, which had been ahead of China for two years.
Expectations for economic reform were already high but are now putting heightened pressure on prime minister Narendra Modi of the Hindu nationalist party BJP. Another problem that plagued Modi’s campaign, high unemployment, was also confirmed in the first quarter at 6.1 percent after recordkeeping was overhauled.
India's Central Bank on Thursday unexpectedly kept interest rates unchanged, after having cut them five times in a row as GDP figures deteriorated.