Bitten by the slowdown bug, India’s
macroeconomic indicators continue to get worsen with each passing day. The
latest pointer is the GDP figures released on Friday that show a dismal growth
of the economy in the first quarter of the current fiscal.
Figures released by Central Statistics
Office indicate that India’s Gross Domestic Product (GDP) for the first
quarter (April-June) of 2013-14, grew 4.4% over the corresponding quarter of
previous year, the slowest pace in the last few years. The growth rate is much
less that 4.7% which many analysts had expected, raising fears of downgrade of
India’s credit rating.
Manufacturing and mining sectors were the worst hit with -1.2% and -2.8% decline. Financing, insurance, real estate and business
services grew at 8.9% while community, social and
personal services grew by 9.4%.
The slump in GDP comes at a time when India’s rupee is on a freefall. The
rupee has lost almost 20% against the US dollar since the beginning of this
year, raising impost bill and threatening to inflate the widening current
account deficit (CAD).