(MENAFN) India's finance minister, Chidambaram, stated that in the 3 months to September 30, the country's economy expanded at nearly 5.5 percent, reported Gulf News.
The minister said that the figure is compared with the 6.9-percent growth posted in 2011's second quarter.
The country's economy, which was growing by more than 8 percent before 2011-2012, has been negatively affected by high interest rates, the euro zone debt crisis that decelerated exports, and weak investment due to domestic and overseas concerns regarding policy and corruption.
The Indian central bank has been maintaining interest rates high to counter high inflation, which lessened marginally last month to 7.45 percent on-year.
Nevertheless, businesses in the country say that high cost of borrowing has restrained consumer spending, therefore, the central bank must reduce rates.
It is worth noting that India plans to boost economic growth level to at least 8 percent, as it's a necessity in order to slash severe poverty.