The Indian economy slowed sharply in the first quarter of the current financial year, latest data released by the National Statistics Office showed. This was the time when India voted to re-elect the National Democratic Alliance government at the Centre. The magnitude of the slowdown was massive: In nominal terms, India's gross domestic product (GDP) grew by 7.99 per cent, lowest since December 2002 (Chart 1), if we refer to the national accounts series in use in respective periods.
In real terms, which takes into account the impact of inflation, India's GDP grew by 5 per cent, while the gross