India s GDP growth drops to 4.4 in Q1 lowest in last 4

India's Gross Domestic Product (GDP) growth dropped to 4.4% for the first quarter of the current financial year which was much lower compared to 4.8% GDP growth in the previous quarter. This is the lowest quarterly growth in last four years. In the first quarter of 2012-13, the growth was 5.4%.

The manufacturing and mining sector witnessed negative growth of 1.2% and 2.8% respectively which pulled down the overall GDP growth numbers. Manufacturing sector growth stood at 2.6% in the previous quarter. Financing, insurance, real estate & business services sector growth stood at 8.9% in first quarter compared to 9.1% growth in the previous quarter. With this growth rate India-s GDP growth is going towards decade low GDP growth for the current financial year 2013-14.

Lower GDP growth with high inflation, record high current account deficit and record Indian rupee depreciation will further worsen India-s macro-economic condition. Also food security bill and Rupee depreciation are expected to increase fiscal deficit for the current financial year. India may face Credit rating downgrade if this continues.  RBI needs to cut rates immediately to boost growth which is difficult at this stage with high inflation and double digit retail inflation rate.

Refer the link to check sector wise growth in first quarter of 2013-14: