The Indian economy is headed towards deflation, which could raise unemployment, even as its central bank, the Reserve Bank of India, was expected to cut the cash reserve ratio by some 150 basis points, says Goldman Sachs.

The global consultancy has made the prediction based on the weekly movement of the official wholesale price index, as per which the country's annual rate of inflation fell to a six-year low of 2.43% for the week ended 28 Feb.

Times of India