'Disaster' as Indian GDP growth hits nine-year low

India's growth rate has dropped to its lowest level in nine years as falling external investment, a weak rupee, and an erosion of confidence impact the economy.

GDP growth fell to 5.3% in the first quarter, down from 9.2% a year earlier. The figure was the worst in nearly a decade, surpassing the drop-off in economic activity seen when Lehman Brothers collapsed in 2008. "It is a disaster," said Rajiv Kumar, the secretary-general of the Federation of Indian Chambers of Commerce and Industry, according to the Financial Times. "We are facing a crisis of slow growth and high inflation that is extremely concerning." A shock contraction in manufacturing of 0.3% - compared to 2011's growth of 7.3% - was a major contributor to the fall in GDP, as ...