India's GDP growing at 7.9%, which is the lowest in three years, is indicative of slow down in Indian economy. Recorded for the months of April-June 2008, India's current economic growth rate 7.9% is less than what it was in the same time last year. Last year in same time India grew at 9.2%. Reports blame RBI's hard anti-inflation measures like increasing interest rates for the slow growth.

 

Global rating agency Moody's too has speculated similar growth path. In its revised projection India will grow at 7%-7.5%. However, the rating agency is of opinion that in the present global scenario, 7.9% first-quarter growth meets expectations. On the other hand optimistic P Chidambaram (Finance minister) has said that India would be able to maintain a growth rate of 8% in 2008-09.

 

According to Central Statistics Organization (CSO), growth in trade, hotels, transport and communication fell to 11.2% against 13.1% in the same period last year. Similarly, there is slow down in manufacturing to 5.6% in Q1, in the same period last year it was 10.9%. Agriculture as usual is worst performer at 3% which in same period last year was 4.4%.