India's economy grew 7.7 percent in the second quarter compared to the same period last year, below the 7.8 percent first quarter growth, the government said.
The latest gross domestic product numbers were the lowest in six quarters, the finance ministry said.
The government has been battling stubborn inflation, which has hovered above 9 percent despite interest rate hikes by the central bank. The higher interest rates, however, are putting a break on economic growth.
Another headache for the government is the rise of the fiscal deficit, which surged to about $51 billion in the April-July period, more than twice the figure in the same four months last year.
The Indian Express reported the fiscal deficit for the quarter hit 55.4 percent of the target for the entire fiscal year.
The rise in the deficit was because of lower tax mobilization from last year, the Economic Times reported.