India's central bank has cut its main interest rates for the first time in three years as it shifts its focus to growth from inflation.
Food prices have been one of the main drivers of price growth in IndiaThe Reserve Bank of India (RBI) lowered its key rate to 8% from 8.5%.
India has been battling consumer price growth and the central bank increased interest rates 13 times since March 2010.
However, recent figures showed that inflation was easing while economic growth was sputtering.
On Monday, a report showed that consumer prices rose by 6.89% in March from a year earlier, down from 6.95% in February.
At the same time there have been increasing warnings that the high cost of borrowing has been hurting India's economy.
India's gross domestic product expanded by 6.1% between October and December, from a year earlier, the weakest pace of growth in almost three years.
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