The global ratings agency Standard & Poor's has lowered India's economic growth forecast by one percent to 5.5 % for 2012 due to deficient rainfall and crisis in the Eurozone and weak US recovery.
The monsoon deficit has affected Indian agriculture, which is as a substantial part of the economy. Besides, the cautious investor sentiment has made potential investors more critical of India's policy and infrastructure shortcomings. The Indian economy grew at a sluggish 5.5 % during April-June 2012 as compared to 8 % in the corresponding quarter last year.
S & P forecasts that economic growth situation would remain sluggish in the second half of the year too.