India's economic growth in the three months to December was at its weakest in over three years due to a slowdown in agriculture, mining and manufacturing, the Federation of Indian Chambers of Commerce and Industry said on Wednesday.
Meanwhile, higher interest rates, a decline in domestic demand and an increase in input costs hampered investment, according to the federal statistics office.
GDP climbed 6.1 percent in October to December and was 0.3 percent below market expectations. India's 10-year government bond climbed a single base point to 8.2 percent following the announcement.
The Reserve Bank of India had previously discussed options with the government to cut interest rates in an attempt to fuel the economy.