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