India growth hard hit by Euro zone crisis

Prolonged debt crisis in European nations has given rise to nervousness in global financial markets, which has resulted in capital outflows and sharp depreciation of the rupee in the recent times.

“The recent development in the euro zone has heightened uncertainty in financial markets. India's short-term growth prospects have been adversely impacted,” he told reporters.
India’s economy grew 7.7 per cent in the first quarter (April-June) this year compared with 8.8 per cent growth in the same quarter last year.

But, the worst is that the economy is expected to grow less than 7.7 per cent in the second quarter, the finance minister said this on Sunday.

The downward risk to growth increased in the second quarter (July-Sept) with inflation hovering close to double digit (9.73 per cent for October), slower industrial output, as low as 1.9 per cent in September, and persistent high global crude prices and stalled economic recovery in the West.