The Indian parliament in New Delhi
Media playback is unsupported on your device
Video

Oil and politics hit India growth

High interest rates, political gridlock and the possibility of an oil shock may slow India's economic growth further in 2012, according to analysts.

Asia's third biggest economy is forecast to expand by around 7% in the fiscal year to the end of March, compared to 8.4% the same period a year earlier.

Vishnu Varathan, market economist at Mizuho Bank, told Asia Business Report that there was only limited room for the central bank to boost growth by cutting interest rates, despite falling inflation.

  • 07 Feb 2012