Manmohan Singh, India’s prime minister, has cut his forecast for his country’s economic growth rate to 7 per cent this year, signalling a sharp slowdown in the world’s fastest growing large economy after China.
Mr Singh said yesterday that India was “going through difficult times”, alluding to a severe test of his leadership from falling growth, rising prices and a bitterly divided parliament.
His acknowledgement of weaker economic performance comes weeks before elections in five states, including the political crucible of Uttar Pradesh.
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