India’s GDP grew at a mere 4.4 per cent in the first quarter (April-June) of the current fiscal, adding gloom to the country’s already grim economic situation.
This is the third straight quarter that India has grown by less than five per cent, and is the slowest GDP growth since the January-March 2009 quarter, when a financial crisis hit the world economy.
Growth in the second quarter is also likely to be poor as India faces the twin problem of a fall in the rupee’s value and tight liquidity.
Earlier, Prime Minister Manmohan Singh expressed hope that growth in the current fiscal will rise to 5.5 per cent, up from 5 per cent in 2012-13. Some economists say growth in 2013-14 may be less than 5 per cent.