India's economic growth could slow to as little as 5.5 per cent this financial year, finance minister P Chidambaram told Reuters, signalling the possibility that Asia's third largest economy will expand at its slowest pace in a decade.
“I'm looking forward to this year ending with 5.5 to 6 per cent growth, barring any unexpected shocks, and next year getting back to 7 per cent growth, and in 2014-15 getting back to 8 per cent growth,“ he said in an interview.
The last time full-year growth fell below 6 per cent was in 2002-03 when the economy expanded 4 per cent. A slump in industrial activity because of slow policy-making and the global slowdown, combined with a drought, have dragged on India's performance this financial year, which ends in March 2013.
Until now, the government had estimated growth this year at around 6 per cent. The International Monetary Fund last month slashed its 2012 calendar year economic growth forecast for India to 4.9 per cent from 6.1 per cent.
The Reserve Bank of India cut its GDP growth forecast for Asia's third largest economy this fiscal year to 5.8 percent from 6.5 percent previously.
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