Indian Economy is on Slowest Growth Path

The Indian economy has been on slow pace in the fiscal year 2012-13. The GDP rate is at 5 per cent, once the figure was achieved in last decade. There were days when it had been speculated that the country would achieve the double digit growth rate. Now the scenario has been just reverse to that, the growth rate is at 5 percent rather achieving 10 per cent.

The headline inflation and the key interest rates have hampered the growth rate. Adding insult to injuries, the sectors and industrial index were never upto the market in boosting the economy. The IIP was seen in negative and zero, manufacturing sector was seen helpless in heightening Indian economy.

The year 2012 was full of macroeconomic problems for the economy. And the economy was battling against the high inflation rate, which once was touched to double digit.

The slow growth rate would be a big challenge for the UPA coalition government to tackle. However, the headline inflation was seen moderating in the April 2013, which made the Reserve Bank of India to cut the interest rates, ultimately the impact was loud and clear on the equity market in India.

The stock market was achieved the psychological mark of 20,000 and retained the confidence of the rattle investors, those were in concern due to slow growth rate and de-railing economic reforms in India.

The major concern for the UPA government is that it has limited time to revive the economy or act fast on the economy reforms. In 2014, the nation would witness the mega polls. The government would try to revive the economy before it approaches to the voters and it will also try to have some good ranks to its report card.