India's government predicted weaker-than-expected expansion for the financial year ending March 2013 on Thursday, owing to slower growth in the farm sector and manufacturing.

Gross domestic product is set to grow 5 percent in the fiscal 2013, preliminary estimates from the Central Statistical Office revealed. Growth was weaker than the 6.2 percent expansion in the financial year 2012.

Earlier, the government had forecast current fiscal year growth between 5.7 percent and 5.9 percent.

Yesterday, the International Monetary Fund said India's growth will slow notably to 5.4 percent this fiscal, before rising to 6 percent in 2013-14. The economy has potential to rebound in the near term if the government implement more reforms, the lender added.

Last week, the Reserve Bank of India cut the growth forecast to 5.5 percent from 5.8 percent. The bank reduced interest rates for the first time in nine months on January 29, as it shifted its focus to supporting growth from battling high inflation.

RTTNews