India growth at 5.3 pct, stuck at 3-yr low

Last Updated: Fri, Nov 30, 2012 06:48 hrs

Mumbai: India's economy grew 5.3 per cent in the September quarter, government data showed on Friday, stuck at its lowest levels in three years as New Delhi struggles to enact reforms to kick-start investment and growth.

The number was in line with expectations.

Slowing growth complicates New Delhi's efforts to create jobs for its exploding youth population and balance the budget, while paying for costly social programs in advance of national elections in 2014.

India's economy grew 5.5 percent during the June quarter, after expanding by 5.3 percent in the March quarter. This is the slowest pace since the global recession, which dragged India's economic growth down to 3.5 percent for the January-March quarter of 2009.

"Our expectation is that there will be a pickup in the second half," C. Rangarajan, chairman of the Prime Minister's Economic Advisory Council, told CNBC-TV18. "We should be able to have a growth rate of 5.5 percent or a little above that for the year as a whole."

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