India’s GDP growth slows to 6.3% in July-September quarter
The gross domestic product had expanded by 8.4% in the same quarter last year.
India’s gross domestic product grew by 6.3% in the second quarter (July-September) of the financial year 2022-’23, government data showed on Wednesday. The growth rate has slowed down from 8.4% in the same quarter last year.
In the first quarter (April-June) of this financial year, the economy had grown by 13.5%.
The growth rate figures released on Wednesday are in line with projections of 6.1% to 6.3% made by the Reserve Bank of India earlier this month, according to PTI.
Several rating agencies and economic bodies have predicted that India’s economy will slow down as compared to the full-year growth of 6.9% recorded in the previous financial year of 2021-’22.
Among key sectors, agriculture rose by 4.6%, while growth in manufacturing sector fell by 4.3%. The construction sector, which generates wide employment, grew by 6.6% as compared to the second quarter of the previous financial year, according to government data. The mining sector also saw a fall in growth by 2.8%.
The Gross Value Added, or GVA, which measures the economic output, apart from taxes, grew at 5.6% and was on expected lines, Madhavi Arora, lead economist at Emkay Global Financial Services, told Reuters.
“Going ahead, even as recovery in domestic economic activity is yet to become broad-based, protracted global drags, shrinking corporate profitability, demand-curbing monetary policies and diminishing global growth prospects weigh on output,” she said.
Sujan Hajra, the chief economist at financial services firm Anand Rathi, told the news agency that he expected the growth slowdown to continue for the rest of this financial year.