An official report on India's economy says that the country's growth rate has fallen to its lowest level in five years and the budget deficit has widened.

The Economic Survey of India says it's too early to assess the impact of sanctions against India after its recent nuclear tests, but says that the government needs to take urgent action to ensure growth and stability.

The report, presented annually to parliament before the budget, shows a two percent fall in growth -- now at five percent -- in the current financial year.

The fall is attributed to a sharp slump in agricultural and industrial production.