India’s economy will grow by about 5.8% this year, representing the slowest rate of growth in a decade, according to revised official forecasts.
The country’s finance ministry said Monday it was expecting India’s growth rate to accelerate slightly in the second half of its financial year, which ends in March 2013. But gross domestic product will still only expand by 5.7% to 5.9% annually, compared with an earlier forecast of 7.6%. The last year growth was weaker was 2002-03.
India has recently enacted reforms to allow more foreign investment in the retail sector but more will need to be done if the world’s second most populous nation is to return to the near double-digit rates of growth seen in previous years.
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