Indian economy slows further, posts growth of 4.5%

India's economic slowdown deepened in the October-December quarter, expanding by 4.5 percent on an annual basis, official data showed on Thursday. The Indian economy, the world's 10th biggest, is projected to expand by 5.0 percent this fiscal year to March, the lowest figure for a decade, after growth of 6.2 percent last financial year. Over the course of this fiscal year, growth has dropped progressively from 5.5 percent growth in the April-to-June quarter and 5.3 percent in the July-September quarter. In the last quarter, mining output fell 1.4 percent on an annual basis, while the crucial manufacturing sector remained weak, expanding by just 2.5 percent. The poor figures come before national elections in 2014 when the corruption-plagued government led by the centre-left Congress party is expected to face a tough fight to stay in power. A string of pro-market reforms starting at the end of last year and the first interest rate cut in nine months this week are expected to help boost the economy. Finance Minister P. Chidambaram unveiled his annual budget for 2013/14 on Thursday, promising to pull the economy out of its "trough".