Yearly economic growth of India dipped to a 9-year low of 5.3% in the January-March 2012 quarter. Even during the 2008-09, the year when India was facing the hit by the global financial meltdown, growth rate was higher at 6.7%. It is the lowest growth rate since 4.0% in 2002-03.

Some of the factors being attributed to for the low GDP growth rate:

• Euro zone debt crisis
• Lack of economic reforms
• High interest rates
• Poor investment and widening trade gap
• Low performing manufacturing sector
• Swelling Current Account Deficit
• Governments unpredictable regulations and tax