India's GDP Growth Slows to 5.4%, Lowest in Two Years

Weakened manufacturing and mining sectors, along with sluggish urban consumption, contribute to the sharp decline in economic growth.

India's GDP growth rate for July-September 2024 fell to 5.4%, the lowest since the December 2022 quarter, which recorded 4.3%.
The manufacturing sector's growth plummeted to 2.2%, a significant drop from 14.3% in the same quarter last year, while mining contracted by 0.1%.
Private consumption, accounting for 60% of GDP, slowed due to high food inflation, elevated borrowing costs, and weak real wage growth, despite a recovery in rural demand.
Government spending and agricultural growth, which rose to 3.5% from 1.7% last year, provided some support to the economy.
The Reserve Bank of India had projected 7% growth for the quarter, but analysts now expect full-year growth to fall below the central bank's estimate of 7.2%.