The slowing economy makes it more difficult for President Xi Jinping to fight back forcefully against the US.
Jefferies Activity Index growth remained negative for the second month in a row in May, implying GDP growth of 4 per cent.
India's economic growth slowed to a five-year low of 5.8 per cent in the January-March quarter.
The fiscal deficit this year is 3.3 per cent brought down from 3.4 per cent.
The Economic Survey projected India's growth to rise to 7 pc in the current fiscal, from five-year low of 6.8 pc in 2018-19.
India continued to remain the fastest-growing major economy in the world in 2018-19.
As the country has only been able to put USD 100 to 110 billion annually into infrastructure development.
In 2018-19, direct taxes grew by 13.4 per cent owing to improved performance of corporate tax.
The growth projection is higher than a five-year low economic growth of 6.8 per cent for the year ended March 31.
Govt might this year again slip on fiscal deficit front given sluggish GST collections and lower-than-expected growth in direct taxes.