Indian economy in crisis

This sand sculpture righlt explains the plight of the Indian Rupee.(AP Photo)

The Indian economy, Asia's third largest, grew 5 percent in the financial year which ended in March, its slowest in a decade and well off the 8 percent pace it has averaged over the past 10 years.

Activists of Democratic Youth Federation of India (DYFI) shout slogans during a protest against the government over the fall of the Indian rupee, in Hyderabad. The rupee has plummeted new lows against the dollar on a near daily basis, showing the pressure of a current account deficit that has swelled from high import costs. (AP Photo)

The Indian rupee fell to a record low against the dollar Monday despite the measures to curb its decline. India recently tightened restrictions on the amount of money Indian companies and individuals can send out of the country, trying to curb a sharp decline in the rupee.

Stockbroker looks at a trading terminal at a stock brokerage in Mumbai. From India to Indonesia, the currencies and stock markets of emerging economies have been roiled by speculation about when the U.S. Federal Reserve will start scaling back monetary stimulus that has kept interest rates ultra low and sent investors to developing markets in search of higher returns. Separately, Asian economies that had been star performers are now in the dumps and the ebbing investment tide has sparked fears the region will suffer a rerun of its 1997 98 financial crisis. (AP Photo)

The U.S. dollar has risen about 15 percent against the Indian rupee this year, pushing up costs for oil and other crucial imports, amid stagnating economic growth. (AP Photo)

The Indian rupee has plumbed new lows against the dollar on a near daily basis, showing the pressure of a current account deficit that has swelled from high import costs. (AP Photo)

The Indian rupee has crashed over 20 per cent since May 1. The fall began at around the same time the US indicated tapering of its Quantitative Easing.