India is expected to announce the economy grew just 6.1 percent in the January-March quarter, a three-year low likely to add further pressure on the embattled government.

There is "extreme pessimism" about India's prospects, said Dariusz Kowalczyk, senior economist at Credit Agricole, ahead of the figures for the final three months of the fiscal year, due at 0530 GMT on Thursday.

"Fundamentals are indeed weak with slower growth, elevated inflation and the highest deficit-to-GDP ratios in Asia," he said, forecasting growth may stay below seven percent until after the general elections in 2014.

According to a poll of analysts by Dow Jones Newswires, Asia's third-largest economy probably grew 6.1 percent in the three months to March, its slowest pace since the quarter to June 2009 when it expanded at the same rate.

For the fiscal year to March 2012, analysts predict the economy expanded around 6.7 percent -- lower than the government's estimate of 6.9 percent and far below the 8.4 percent of the previous year.

The sluggish figures are expected to keep up pressure on India's currency, which hit a new record low of 56.47 rupees to the dollar on Thursday, with some analysts forecasting it could drop to as low as 60 rupees if weak growth persists.

Data this month showed industrial production contracted 3.5 percent in March from a year earlier after expanding a modest 4.1 percent in February, reflecting the effect of high interest rates and a faltering world economy.

"The slowdown has been most pronounced in India's industrial sector," said Glenn Levine, senior economist at Moody's Analytics, a ratings agency.

While six percent growth would be the envy of much of the world, at least nine to 10 percent expansion is needed to reduce India's widespread poverty, experts say.

The figures will add to concerns about the global economy as China has also recently released a slew of bleak data, fuelling fears it is cooling faster than expected.

Hopes the two emerging market giants could underpin global recovery have been steadily dashed by their weakening performances.

With the weak rupee expected to stoke inflation -- already above seven percent -- the central bank's ability to stimulate the economy by rolling back an aggressive string of interest rate hikes has been sharply curbed.

The growth figures are being announced after Prime Minister Manmohan Singh admitted his squabbling Congress-led coalition must do more to get the once red-hot economy moving again.

"We need to do better," the 79-year-old leader said as he presented his government's annual report card last week.

Singh is credited with opening up India's economy when he was the finance minister in 1991 but his premiership has been tainted by a series of policy U-turns and corruption scandals.

His once ambitious reform agenda has stalled amid coalition infighting, and the economic climate has been further strained by the announcement of new tax policies seen as hostile to foreign investment.

India's economy is suffering from "policy incoherence, shifting global risk appetite and a comatose government", said Rajeev Malik, senior economist at brokerage CLSA. AFP