The Indian economy grew at a slower pace in the first quarter of this year than previously expected, which has fuelled concerns about inflation.

However, the official data released on Wednesday showed that GDP growth was actually revised down to 5% in November from 6.3% in October, and to 4.9% in February from 5.9%.

The figures come as the Reserve Bank of India said that the inflation rate was likely to remain low in the next 12 months.

The economy shrank at an annualised rate of 5.1% in 2015-16, while inflation was 5.3%.

Indian consumer spending, which is a key driver of economic growth, contracted at an 8.2 per cent annualised pace in November, and by a further 0.3 percentage points in January.

The country is now expected to grow at a pace of 6.1 per cent this year, according to an estimate from the Reserve Board of India. 

The Reserve Bank also noted that its survey showed that consumption remained the biggest driver of growth in the country, with consumer spending accounting for almost 40 per cent of the GDP.

The survey showed growth of 1.7 per cent in the manufacturing sector, and 1.1 percentage points for service sectors. 

“This indicates that while the economy continues to slow, consumption continues to grow strongly,” said Pankaj Mishra, chief economist at ING Securities. 

India’s official growth rate of 6% was revised down from 7.6% in September, when it was reported that inflation had been cut to a record low of 4.5% in March.

The central bank said the economy’s pace of growth had been revised down due to the “difficult” conditions in the economy. 

This was despite the fact that India has had a surplus for more than a year, the economy is still expected to shrink by 3.3 per cent year-on-year in the third quarter, and inflation is forecast to fall to 5-6% this year.