India's economy grew only 4.6 percent in the last economic quarter under the Congress party-led administration. This figure was released by the Indian government Friday, and was under the 4.7 percent increase from last quarter, that ended in December. Analysts had forecast a 4.8 percent growth for this quarter, so the decrease came as a surprise is being viewed as a demonstration of the challenges ahead for the newly elected government under Narendra Modi of the Bharatiya Janata Party. This has been the second straight year of fiscal growth under 5 percent, a major decrease from the 8.4 percent growth during the 2010-2011 fiscal year. While the electoral victory has resulted in increased business confidence, economists caution that it will take some time for the effects of the victory to result in real economic growth. The Indian economy is filled with stubborn inflation, weak domestic demand, a considerable fiscal deficit, elevated borrowing rates and depleted industrial output. The elect of Modi and his party comes with heavy expectations of a quick recovery to the economy because of his reputation as a friendly businessman and tract record of expediting large-scale infrastructure projects. However, economists argue that the euphoria that comes with his election ignores the systemic issues that caused the economic downturn in the first place, and therefore that expectations of a quick recovery are unrealistic. Predictions for the next fiscal year put the economic growth of India at 5-6 percent.
-Ambrielle Barker
http://india.blogs.nytimes.com/2014/05/30/india-continues-slow-pace-of-economic-growth/?ref=world
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