Factors leading to India slowdown bottomed out: Mukherjee

NEW DELHI Thu May 31, 2012 3:40pm IST

Finance Minister Pranab Mukherjee listens to a question during a news conference in New Delhi May 27, 2009. REUTERS/B Mathur/Files

Finance Minister Pranab Mukherjee listens to a question during a news conference in New Delhi May 27, 2009.

Credit: Reuters/B Mathur/Files

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NEW DELHI (Reuters) - Most of the factors that led to India's growth slowdown have bottomed out, Finance Minister Pranab Mukherjee said in a statement on Thursday, after the economy grew at its weakest pace in nine years in the March quarter.

"Among the factors that have contributed to the slowdown are the tight monetary policy that led to a significant rise in interest costs and the weak global sentiments that affected growth in domestic private investment ... have bottomed out," Mukherjee said.

Annual economic growth slumped to 5.3 percent in the March quarter as the manufacturing sector contracted and a fall in the rupee to a record low suggests the economy remains under pressure in the current quarter.

(Reporting by Arup Roychoudhury; Editing by Ranjit Gangadharan)

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