India growing at 5% per annum

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The economic growth of India has slowed down even further in 2012.
The UN Economic and Social Commission for Asia and the Pacific (ESCAP) said that India’s growth slowed down mainly because of severe monetary tightening by the Reserve bank of India. In 2011, the Indian economy grew by 6.5%. This time it’s only 5.9%, after an 8 percent growth in the last three years. This makes it the lowest growth rate since 2002-03; and this has affected Rupee in Forex market trading.
In September, the government took the decision to pursue some economic reforms such as FDI in multi-brand retailing, hike in petrol prices in the hope to turn around the economy.
Chief Economist Nagesh Kumar said that the RBI needs to ease monetary policy that give rise to high inflation, exchange rate instabilities, high interest rates and adversely impacted business growth. “It is time to loosen the policy,” he said.
On a different train of thought, it is said the recently, Rupees fell for weeks straight, and it could look bad on currency trading exchange.

                                                                           (Based on Timesofindia.indiatimes.com