Indian economy facing slowdown

The annual economic survey in India has warned of a slowdown in the growth rate in the current year.

It said drastic counter-measures were needed in the forthcoming national budget, including cuts in subsidies and more financial help for small-scale industries.

The report also called for the abolition of what it called irrelevant government departments and ministries.

Presenting the survey to parliament, the finance minister, Yaswant Sinha, said that irregular rainfall and a lack of new investment had hit agricultural production and industrial growth. The survey said the powerful earthquake in the state of Gujarat last month would also have an impact on growth.

From the newsroom of the BBC World Service