India is facing a decade-low growth rate according to the latest data released by the Central Statistics Office in New Delhi.
The gross domestic product is expected to dip to 5% in the year ending in March from 6.2% in the previous year and lowest since 4% rise in the year ending in March 2003.
The country is also facing 7% inflation largely driven by a surge in food prices because of the mismanagement in distribution and storage handled by the government for a decade.
Current account deficit is also expected to jump above $22.31 billion in the quarter ending in September.
Finance Minister Chidambaram is expected to present a budget to parliament at the end of the month that will target fiscal deficit to fall to 5.3% in the next fiscal year.
Wholesale price index increased above 7% for the most of 2012 and consumer prices surged 10.5% in the year, the fast rate of inflation among emerging countries including China, Brazil, Russia and Indonesia.