India expects GDP to exceed 6.5% in 2012

India expects a Gross Domestic Product (GDP) growth of more than 6.5% for the current fiscal year despite foreign and domestic challenges. Although the global economy is going through a difficult phase and the local developments are impeding country's economy, the country will do a little better this year, India's Prime Minister Dr Manmohan Singh said in a media statement. India's economic growth of 5.3% last year is the lowest over the last nine years, he said and added that a lack of political consensus coupled with decreasing foreign investment and slack industrial output, high inflation rates, significant fiscal and current account deficits and declining rupee is impeding the country's economic growth. Dr Singh stressed that the government will take steps to protect India from the repercussions of the global economic slowdown, encourage new investments, engage the private sector, improve the management of government finances and create new employment opportunities.