News / Economy

    India's Economic Growth Slowest in a Decade

    A currency trader works in front of a screen showing the value of the Indian rupee against the U.S. dollar on the floor of a trading firm in Mumbai, May 31, 2013.
    A currency trader works in front of a screen showing the value of the Indian rupee against the U.S. dollar on the floor of a trading firm in Mumbai, May 31, 2013.
    Anjana Pasricha
    India’s economic growth has plunged to its slowest pace in a decade. While the government is struggling to revive growth, economists say any improvement will come very slowly.
     
    The numbers released by the government Friday show that India’s economy grew by 5 percent in the financial year which ended in March.
     
    The slide was not unexpected -- the economy has been losing steam steadily in the past year. But it is a huge disappointment for one of the world’s major emerging economies, which averaged 8 percent growth over the last decade and won recognition as an engine of global growth .  

    Chief economist at CRISIL Ratings Agency in Mumbai, D.K.Joshi says the economy has been hit by several factors including an industrial slowdown.    

    “There are many areas where the weakness has emerged, and the key area is manufacturing sector, which has not done well for last three-four years, and last year it recorded growth of 1 percent which is very, very low," said Joshi. "It is a 20-year low. And private consumption continues to remain weak and investments are yet to pick up.”

    ​The government introduced a slew of reforms in September to kickstart the economy. These include opening up India’s retail and aviation sector to foreign investors.  
     
    But other reforms have been stalled by angry opposition parties as the weak coalition government remains mired in corruption scandals.  These include bills to reduce restrictions on foreign investors in the pension and insurance industries, a bill which could make it easier to acquire land for industrial and mining projects, and tax reforms.
     
    As a result investors, both domestic and foreign, have been postponing any substantial investments. And economists warn the government may be unable to push through any more pro business reforms before elections next May.  

    India GDP, 2000 - 2012India GDP, 2000 - 2012
    x
    India GDP, 2000 - 2012
    India GDP, 2000 - 2012
    Economist D.K. Joshi says bureaucratic red tape, governance issues and infrastructure bottlenecks also are hurting business confidence.     

    “We might see some lift in growth which we expect GDP growth to go up from 5 percent to 6 percent. I think one of the critical problems we face in the economy is that private investment has slowed down substantially," said Joshi. "And private sector is more productive. Unless it revives, I don’t see growth going back to over 7 percent.”   

    While India’s growth remains ahead of many Western countries, it has fallen behind Asian countries such as Indonesia and the Philippines. Many blame the government for not moving fast enough to fix the problems holding back the economy.

    You May Like

    Russian-Backed Offensive in Syria Pushes War to Tipping Point

    As threat to Aleppo and rebel forces grows, US plan to negotiate becomes less and less appealing for Syrian government, says one military analyst

    IS Runs Timber Smuggling Business in Afghanistan, Officials Say

    Government turning blind eye to smuggling, according to tribal leaders; Afghanistan's forest cover dropped by 50 percent in three decades, experts say

    Video White House Seeks $1.8 Billion to Combat Zika

    Obama administration says funding would 'support essential strategies to combat the virus' such as rapidly expanding mosquito control programs, accelerating vaccine research

    This forum has been closed.
    Comment Sorting
    Comments
         
    by: musawi melake
    May 31, 2013 6:41 PM
    It's not news to those who know about India, which is founded on feudal principles, where the so called democratic structure is being utilized to get richer by some able minds. Everyone thinks about cheating the neighbour to get rich or get powerful. If one wants to be big in that country, then the easiest paths are:
    *)to become a brutal politician on whom any political party can depend upon(not the other way around) to win seats on that part of the country.
    **)Be an unscrupulous businessman, who can commit to all sorts of gruesome things and sell-off country's heritage to anyone, or make films with rapes and women abuses as the main items(these are box office hits).
    **) Become a Godman(Swami) and form a charity and trust. In this case even some foolish Americans will sower money as donations to the man who was none other than a poor clerical servant or a street seller just a while ago.

    When the currency is sleeping as black-money, how could the country come up. Yet, the common Indian dream about becoming super power

    by: bear from: Canada
    May 31, 2013 2:12 PM
    Oh darn, have the US and Canada not contracted out enough jobs to keep India going?
    Heavens to bestsies!

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    'No Means No' Program Targets Sexual Violence in Kenyai
    X
    February 08, 2016 4:30 PM
    The organizers of an initiative to reduce and stop rape in the informal settlements around Kenya's capital say their program is having marked success. Girls are taking self-defense classes while the boys are learning how to protect the girls and respect them. Lenny Ruvaga reports from Nairobi.
    Video

    Video 'No Means No' Program Targets Sexual Violence in Kenya

    The organizers of an initiative to reduce and stop rape in the informal settlements around Kenya's capital say their program is having marked success. Girls are taking self-defense classes while the boys are learning how to protect the girls and respect them. Lenny Ruvaga reports from Nairobi.
    Video

    Video New Hampshire Voters Are Independent, Mindful of History

    Once every four years, the northeastern state of New Hampshire becomes the center of the U.S. political universe with its first-in-the-nation presidential primary. What's unusual about New Hampshire is how seriously the voters take their role and the responsibility of being among the first to weigh in on the candidates.
    Video

    Video Chocolate Lovers Get a Sweet History Lesson

    Observed in many countries around the world, Valentine’s Day is sometimes celebrated with chocolate festivals. But at a festival near Washington, the visitors experience a bit more than a sugar rush. They go on a sweet journey through history. VOA’s June Soh takes us to the festival.
    Video

    Video 'Smart' Bandages Could Heal Wounds More Quickly

    Simple bandages are usually seen as the first line of attack in healing small to moderate wounds and burns. But scientists say new synthetic materials with embedded microsensors could turn bandages into a much more valuable tool for emergency physicians. VOA’s George Putic reports.
    Video

    Video Bhutanese Refugees in New Hampshire Closely Watching Primary Election

    They fled their country and lived in refugee camps in neighboring Nepal for decades before being resettled in the northeastern U.S. state of New Hampshire -- now the focus of the U.S. presidential contest. VOA correspondent Aru Pande spoke with members of the Bhutanese community, including new American citizens, about the campaign and the strong anti-immigrant rhetoric of some of the candidates.
    Video

    Video Researchers Use 3-D Printer to Produce Transplantable Body Parts

    Human organ transplants have become fairly common around the world in the past few decades. Researchers at various universities are coordinating their efforts to find solutions -- including teams at the University of Pennsylvania and Rice University in Houston that are experimenting with a 3-D printer -- to make blood vessels and other structures for implant. As VOA’s Greg Flakus reports from Houston, they are also using these artificial body parts to seek ways of defeating cancerous tumors.
    Video

    Video Helping the Blind 'See' Great Art

    There are 285 million blind and visually impaired people in the world who are unable to enjoy visual art at a museum. One New York photographer is trying to fix this situation by making tangible copies of the world’s masterpieces. VOA correspondent Victoria Kupchinetsky was there as visually impaired people got a feel for great art. Joy Wagner narrates her report.
    Video

    Video Sanders, Clinton Battle for Young Democratic Vote

    Despite a narrow loss to former Secretary of State Hillary Clinton in last week's Iowa Democratic caucuses, Vermont Senator Bernie Sanders secured more than 80 percent of the vote among those between the ages of 18 and 29. VOA correspondent Aru Pande talks to Democrats in New Hampshire about who they are leaning towards and why in this week's primary.
    Video

    Video German Artists to Memorialize Refugees With Life Jacket Exhibit

    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video E-readers Help Ease Africa's Book Shortage

    Millions of people in Africa can't read, and there's a chronic shortage of books. A non-profit organization called Worldreader is trying to help change all that one e-reader at a time. VOA’s Deborah Block tells us about a girls' school in Nairobi, Kenya where Worldreader is making a difference.
    Video

    Video Genius Lets World Share Its Knowledge

    Inspired by crowdsourcing companies like Wikipedia, Genius allows anyone to edit anything on the web, using its web annotation tool
    Video

    Video In Philippines, Mixed Feelings About Greater US Military Presence

    In the Philippines, some who will be directly affected by a recent Supreme Court decision clearing the way for more United States troop visits are having mixed reactions.  The increased rotations come at a time when the Philippines is trying to build up its military in the face of growing maritime assertiveness from China.  From Bahile, Palawan on the coast of the South China Sea, Simone Orendain has this story.
    Video

    Video Microcephaly's Connection to Zika: Guilty Until Proven Innocent

    The Zika virus rarely causes problems for the people who get it, but it seems to be having a devastating impact on babies whose mothers are infected with Zika. VOA's Carol Pearson has more.
    Video

    Video Stunning Artworks Attract Record Crowds, Thanks to Social Media

    A new exhibit at the oldest art museum in America is shattering attendance records. Thousands of visitors are lining up to see nine giant works of art that have gotten a much-deserved shot of viral marketing. The 150-year-old Smithsonian American Art Museum has never had a response quite like this. VOA's Julie Taboh reports.

    World Currencies

    EUR
    USD
    0.9008
    JPY
    USD
    116.30
    GBP
    USD
    0.6957
    CAD
    USD
    1.3951
    INR
    USD
    68.033

    Rates may not be current.