India says growth hampered by US, Europe woes

Imdia: Fast-growing India on Friday admitted that the stuttering US recovery and European debt crisis had hit the economy, warning that failure to resolve the problem could further affect expansion.

"The sharply deteriorating global economic environment has had a dampening effect on India," the finance ministry said in its Mid-Year Analysis of the economy in the current financial year. "Compounded with some domestic factors, the global situation has led to a clear slowdown in the growth rate of the Indian economy during the first half of 2011-12." The last full-year assessment of the Indian economy saw the government predict growth of 9.0 percent for 2011-12 but that figure has now been revised downwards to about 7.5 percent.

Gross domestic product growth for the first half of the current financial year was 7.3 percent, the latest report said. The economy grew 8.5 percent in the previous financial year. "We expect some revival next year but the outlook remains mixed," it added.

AFP