"The scope for further rate cuts is limited, and the next cut may well be the last, " said Leif Eskesen, HSBC's chief economist for India.

WSJ: India PM Says Pessimism Over Economy Unwarranted

"The numbers underscore that the room for monetary policy easing is limited, even with progress on fiscal consolidation, " said Leif Eskesen, chief economist for India at HSBC.

WSJ: Asian Manufacturing Growth Slows, Data Show

"The high current account deficit limits room for further easing, and the slowdown in growth is structural and due to supply-side issues, and should be addressed through reforms by the government, " said Leif Eskesen, chief economist for India and Asean at HSBC.

BBC: India cuts interest rates for second time this year