The Indian economy witnessed the lowest growth rate of 5% in 2012-13, down from 6.5% in 2011-12. The services and manufacturing sectors registered a growth rate of 8.6% and 1.2% respectively, a substantial decline compared to previous year due to demand and supply side constraints. Though the Wholesale Price Index (WPI) dropped to 7.3% from 8.9% in the previous year, the Consumer Price Index (CPI) registered a double digit figure of 10.2%. The Reserve Bank of India cut the Repo Rate by 25 basis points in June from 7.5% earlier to 7.25% citing declining growth and mounting food inflation as the main concerns.
Source : Cushman & Wakefield