The Indian government may have to revise their growth forecast say analysts.
India's economy grew by less than expected in the last three months of 2008, official figures have shown.
The country's gross domestic product (GDP) grew by 5.3%, compared to 7.6% in the previous three months and 8.9% in the same period a year earlier.
Agriculture, which makes up about a fifth of the economy was one of the sectors to see growth fall.
The global recession has cut demand for exports, and economists are calling for further measures to boost growth.
These have included a clamour for further interest rate cuts.
The data saw India's main stock exchange index, the Sensex fall by 2% on Friday.
Observers say the data will come as a blow to the Congress-led government, which faces general elections by May.
It has predicted that the economy, which grew by 9% overall to March 2008, will expand by 7.1% in the 12 months to March this year.
However analysts say this will probably be revised down.
"This growth figure is way below my pessimistic expectations, said Rupa Rege Nitsure, chief economist are Bank of Baroda in Mumbai.
"Whatever the government is doing is not going to be very effective as large scale demand stimulus across the world has not proved to be effective in restoring business confidence."
India's economy is Asia's third-largest, and is largely driven by domestic demand. It has seen strong growth of 9% or more in the past three years.
The sharp slowdown in both China and India, which have been among the world's fastest-growing economies, will have a significant impact on the world economy, with the major industrial countries mired in recession.