The world economy is passing through a difficult phase though it may be premature to conclude that global economy is moving towards double-dip recession. Nevertheless the global economic crisis appears to be deep rooted. Recent downgrade of USA by credit rating agency has already impacted the global economy. It may have wide ranging effect on the developed world and has the potential to slow down the growth rate of the developing economies, which were till recently showing the sign of resilience. Most of the European countries are also struggling hard to tackle their sovereign debt crisis. In the period of uncertainties, Indian economy is also passing through a challenging phase. High inflation, rising prices and higher interest rate have slightly dented the growth momentum. India's real gross domestic product (GDP) has grown only 7.7% during April-June 2011 period against a year-on-year increase of 8.8% in the same quarter of 2010-11 and 8.5% during the entire year 2010-11. Economists are expecting further moderation in the GDP growth rate in the quarters ahead. But while growth has moderated, India still remains one of the fastest growing economies in the world. This is the second successive quarter when growth has shown below 8% mark but still remains robust compared to global economies.
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