Yogita Limaye reports from Gujarat on the problems caused by the weak currency
The Indian economy grew at the slowest rate since 2003 in the first three months of 2012, due to a widening trade gap and poor investment.
India's gross domestic product (GDP) rose 5.3% in the first three months of 2012, down from 7.8% in the same period last year, official figures show.
The growth figure was well below market expectations of 6.1%
India is the third-largest economy in Asia but has been struggling with inflation and currency weakness.
Since July last year, the Indian rupee has seen one of the biggest declines among Asian currencies, dropping more than 27% against the US dollar.
"Shocking numbers as growth was even lower than lows witnessed during the financial crisis," said Anubhuti Sahay from Standard Chartered Bank in Mumbai.
The BBC's Yogita Limaye in Mumbai said that just a year ago India was aspiring for double digit growth.
But a global slowdown has reduced external demand, and high inflation coupled with a weak rupee has made things more expensive within the country.
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