India Inc to grow at the rate of 7 percent for 2011-12

Growth estimates for INDIA, Asia's third largest economy is expected to
expand at an annual rate of 7 percent this year 2011-12

the main reason for the deceleration in growth were

interest rate hikes by central bank to reign inflation

no solution visible for the harnessing the dirty borrower Greece and others from European union

the paralysis in government decision-making has harmed investment.

resulting in

Foreign fund inflows dried up in 2011 with net outflows in excess of $450 million,
from record inflows of more than $29 billion in 2010.

the rupee lost about 19 percent of its value against the U.S. dollar owing to the capital flight from the economy.

the BSE Sensex fell by almost 25 percent in 2011 making it among the world's worst performers.

the silverlining is still not visible

inflation in India, as measured by the wholesale price index, slowed to 7.47 percent in December,
but economists forecast prices to rise by an average 8.7 percent this fiscal,
before slowing to 6.5 percent in the year ending March 2013.

the RBI is expected to hold rates steady at 8.5 percent this quarter before cutting its benchmark
repo rate by 100 basis points this year, beginning with a 50 basis point reduction in the second quarter.

The lack of a final solution to the euro zone sovereign debt crisis is weighing on sentiment

The European Union is India's largest trading partner and accounted for trade in goods and services
worth over 60 billion euros in 2010, according to data from the European Commission.