The Indian economy grew by a lower-than-expected 7.3 percent in the second quarter. That's adding pressure to cut rates amid warnings that a cash shortage will slow the world's fastest economic growth.

India's chief economic adviser, Arvind Subramanian, said, "Investment is down substantially that is something which needs to be watched and also some of the increase in GDP is on the strength of government consumption expenditure."

Analysts say the figures will add to pressure on the central bank to lower interest rates at a review next week. That decision is also expected to be influenced by warnings of a spending slowdown after most of the country's currency was withdrawn from circulation earlier this month. The government's shock move to pull 86 percent of the country's currency from circulation aims to tackle widespread tax evasion. Analysts say this will hit the economy.