Infrastructure sector grew at a slower pace of 3 per cent in June as sectors like coal and steel turned weak while oil and gas production fell -- bolstering the case for faster reforms and further rate cuts by the RBI.
The sharp decline in the pace of growth during June follows a six-month high rate of 4.4 per cent in May this year. The growth rate was much higher a year ago at 8.7 per cent in June 2014.
RBI is scheduled to review its policy rates next week on August 4, although it has already cut the rates thrice so far in 2015. Besides, calls are getting louder for an urgent need to quicken the pace of reforms as a number of key reform proposals including in areas like land, labour and resources are stuck due to a political slugfest.