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Thursday, May 31, 2012

Indian growth slides to 9-year low

New Delhi (Financial Times) -- Indian GDP growth slides to 5.3% a clear sign that the country's slowdown is deepening and affecting all sectors of the economy.

Sharp falls in the manufacturing and agriculture sectors have led Asia's third-largest economy to grow only 5.3 per cent year on year in the first three months of 2012, compared to 9.2 per cent growth a year earlier.

This is the worst performance of India's economy in nine years and far worse than the situation in the wake of the global financial crisis and the collapse of Lehman Brothers in late 2008, adding pressure on policy makers to take emergency actions to revive the country's growth.

"It's a disaster," said Rajiv Kumar, the secretary-general of the Federation of Indian Chambers of Commerce and Industry. "We are facing a crisis of slow growth and high inflation that is extremely concerning." Read More