India’s GDP is estimated to grow 5% in the 2019-20 fiscal year which ends in March, the Indian Statistics Ministry said in a statement on Tuesday, the lowest rate of growth since at least 2013. During the 2018-19 financial year — India's financial year runs from the start of April through the end of March — India’s economy grew 6.8%, indicating a large decrease in economic output this year.

Manufacturing was particularly hard-hit, with a 2% rise this fiscal year, compared to 6.9% growth in the 2018-19 fiscal year. The agricultural sector saw 2.8% growth, in comparison to 2.9% last year.

India Prime Minister Narendra Modi has taken several measures to stimulate the economy. In September, he lowered the headline corporate tax rate in the country from 30% to 22%.

“The step to cut corporate tax is historic. It will give a great stimulus to #MakeInIndia, attract private investment from across the globe, improve competitiveness of our private sector, create more jobs and result in a win-win for 1.3 billion Indians,” Modi tweeted at the time. Modi’s “Make In India” policy seeks to encourage foreign companies to manufacture goods in the South Asian nation.

Former Prime Minister Manmohan Singh, however, has criticized Modi’s government for sowing “distrust” in Indian society, which he believes has caused an economic slowdown.

"Many industrialists tell me that they live in fear of harassment by government authorities. Bankers are reluctant to make new loans, for fear of retribution. Entrepreneurs are hesitant to put up fresh projects, for fear of failure attributed to ulterior motives," Singh told Indian media in November. Modi’s government has sought to weed out corruption that has plagued India’s business culture.

Singh was Modi’s predecessor, and is a member of the center-left Indian National Congress political party, which rivals Modi’s right-wing Bharatiya Janata Party.

The Indian economy has struggled amid lower private consumption, with lenders giving out fewer loans. In September 2018, India’s Infrastructure Leasing & Financial Services Ltd. defaulted on payments to lenders, causing a panic in the country’s financial markets.

Gagan Banga, vice-chairman of the Indiabulls Housing Finance mortgage lender, told the Financial Times that there is “extreme risk aversion” among Indians.

“Today we have a general situation where the business community is scared to invest, the consumer is scared to consume, and lenders are scared of lending both to business and consumers because they feel that the money will get stuck,” he said.

India’s automobile industry is also struggling, as several Indian auto manufacturers were forced to make production cuts in light of shrinking demand in 2019.

India under Modi has sought strong ties with President Donald Trump, with the two leaders touting strong defense and economic ties at a rally in Texas in September.

India's economy, which is expected to run a fiscal deficit of $103 billion in 2019-20, may reflect a broader problem with the global economy.

Phillip Inman, economics writer for the Guardian, noted on Saturday that IMF and World Bank warnings about debt have been dismissed, citing how IMF has stated in October that nearly 40% of the corporate debt in the U.S., China, Japan, Germany, U.K., France, Italy and Spain, "would become so expensive during a recession that it would be impossible to service." There was a record $55 trillion in borrowing in 2018 among emerging-market and developing economies.