Amid struggling with reform measures to alleviate the national financial situation by triggering customer confidence, the government got another blow from the International Monetary Fund (IMF), which has forecasted that India's growth rate will slow-down below 5% this year. It also opined that the new reforms will aid the growth rate to bounce back in 2013 and sketched it to grow by 6% next year, compared to an earlier 6.5% projection.
It has blamed the corruption scandals, tough tax measures, weaker environment, looming governance issues, rupee depreciation, red tape and nationwide blackouts in the summer highlighting concerns about weak infrastructure, for trimming down the rate. It noted that the peaking current account deficit, lowering business sentiments and trimmed inflow of investments, are responsible for the low performance.
In 2011, India had recorded a growth of 6.8% however it dipped recently to 5.5%, marking its lowest in three years. It has also warned China that it’s economic growth is expected to weaken by 7.8% this year, amid continuing euro zone crisis and United States economic slow-down.
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