The Indian economy has slowed down slightly in 2018-19, the finance ministry said in its monthly report, which was released on Thursday.

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The report holds declining growth of private consumption, tepid increase in fixed investment and muted exports responsible for the slowdown.

The implied real GDP growth is lower in Q4FY19, at 6.5 percent while for FY19, the GDP growth rate is seen at 7 percent, it said, adding that the slowing imports hint at a slowdown in the growth.

According to the report, the private consumption decline reflected in the drop of sales growth of 2-wheelers. The trend of fixed investment going up may pause for a while, it said and added that the non-food bank credit has also slowed down in Q4FY19.

The ministry said that among the challenge is to reverse agri sector growth slowdown and sustain industrial growth.

The current account deficit (CAD) is set to fall in Q4FY19, said the ministry, adding that this will limit leakage of growth impulse.

Further, it said that the effects of repo rate cuts are yet to manifest in the investment activity and that the rate cuts are yet to transmit to lending rates of banks.

First Published:May 2, 2019 6:32 PM IST