According to reports, a moderation in India's economy is being contemplated, as suggested by the 7.7% growth in GDP data in the first quarter of the fiscal year in 2012.

Also, this has raised major concerns, owing to the fact that with the exception of major growth in the hotel, trade, transport & communication sector, India's GDP is said to have surged by 5.9% only.

However, there is a major reduction in the rates of the recorded growth in the manufacturing construction and mining sector, which is not a good sign for the general growth vision of the Indian economy, especially in the issue of employment.

Series of factors like increased raw material prices during the long period of increased inflation, as well as the continuous interest rate rise by the RBI boosted global skepticism followed by continuous `policy bottlenecks', which still reduces investments and industrial activity.

Hence it was stated: "The debt problems in some of the major global economies are likely to continue and the WPI inflation still remains at an uncomfortable level. GDP remains subdued during the subsequent two quarters, as its growth for FY12 is expected to be around 8.1%".