Q4 GDP growth drops sharply to 5.3%, lowest in 9 years

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

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