Indian economy continues slowdown

<p>The slowdown of the Indian economy has continued.</p>

The Indian economic slowdown is showing no signs of coming to an end after the latest GDP figures showed a weaker performance than anticipated by analyst.

It was announced that the economy grew at a rate of 4.4 per cent for the second quarter of the year, down from the figure of 4.8 per cent recorded between January and March.

Chandrajit Banerjee, director-general of the Confederation of Indian Industry, stated that while the body does not want to be "alarmist", the situation cannot be underestimated.

"The economy needs the undivided attention of policy makers," she said.

Pressure is now growing on the Indian prime minister Manmohan Singh, who has recently announced a range of measures designed to stimulate the nation's economic growth.

"Growth will pick up in the second half, barring extreme unforeseen eventualities," the prime minister said.

Chris Towner, director of FX Advisory Services at foreign currency exchange brokers HiFX, recently claimed that the rupee hitting a new low against the US dollar could be good for the Indian economy in the long run.

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