India's economy recovery set to be slow
8 May 2013 Last updated at 02:49 BST
Inflation in India has been easing, in part due to falling commodity prices.
This, in turn, gave India's central bank the latitude to cut its key lending rate by 0.25 on Friday to 7.5%.
It was the third rate cut this year and widely expected. But there are worries about the country's growth rate which has slipped sharply.
The BBC's Yogita Limaye asked Duvvuri Subbarao, governor of the Central Bank of India, if the economy was going in the right direction.