India posts worst GDP growth for a decade

India has recorded its worst GDP growth in a decade as fears persist over high inflation and a slump in manufacturing.

Asia's third largest economy grew by 5% in the fiscal year between April 2012 and March 2013, compared to 6.2% the previous year, the latest data showed today. India had been recording annual growth of 9% until a few years ago, but it has slowed since then and in recent months it has seen a sharp decline blamed on a slowdown in its manufacturing and services sectors. Foreign investors have also kept away due to delays in key reforms. Analysts have suggested weak private consumption, capital investment and slowing public spending will ensure there is no quick fix bounce back for gro...