Indian GDP growth slowed to 7.9% in the June quarter of 2008, its lowest rate in 3.5 years. Several sectors saw declines in growth rates compared to the same quarter last year, including electricity, gas and water supply, manufacturing, and financing and insurance. High inflation over 12% and interest rate hikes by the central bank were the primary reasons for the economic slowdown. The services sector, particularly financing, insurance and business services, were most affected by global financial market turmoil.