India's annual growth slows to 5% as New Delhi vows revival

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MUMBAI: India's economy grew five per cent last year, its slowest expansion since the 2008 global financial crisis, official data showed Friday (Jan 31), underlining the challenges facing Prime Minister Narendra Modi's government. But New Delhi said on Friday (Jan 31) it expected a recovery this year, pegging growth at 6.0 to 6.5%.

Narendra Modi, India's prime minister speaking during a news conference at Parliament House on the opening day of the Budget Session in New Delhi on Friday . India's Finance Minister Nirmala Sitharaman is scheduled to present the annual budget on Saturday, and is expected to outline measures to boost consumption in Asia’s third-largest economy. - AFP

"Weak global growth impacting India as well as investment slowdown due to financial sector issues had led to growth dropping to a decade-low in current fiscal," the report said. India needs to create jobs for the 1.2 million new entrants to the labour market every month but unemployment levels have hit a four-decade high.

India must spend about US$1.4 trillion on infrastructure projects by 2025 to achieve its previously announced target of a US$5 trillion economy, it said, adding that New Delhi needed to make it easier for entrepreneurs to start new businesses.

 

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