India’s GDP growth has slowed to 5.4%, marking the lowest rate in the past seven quarters. This decline is attributed to a downturn in key sectors such as manufacturing and mining, which have experienced sluggish performance, reflecting broader economic challenges and reduced industrial output.
India’s GDP growth has decelerated to 5.4%, marking its lowest level in the last seven quarters. This significant slowdown highlights persistent challenges in the country’s economic trajectory, with key sectors like manufacturing and mining experiencing notable declines. The manufacturing sector has faced reduced output due to weaker domestic and global demand, rising input costs, and supply chain disruptions. Similarly, the mining sector has been affected by regulatory hurdles, subdued investment, and declining production levels. Together, these factors underscore broader economic challenges, including slower industrial activity, weakened investor sentiment, and subdued consumption, which continue to weigh on the overall economic growth momentum.
GDP growth has seen a notable decline, slowing to 6.7% in the April-June quarter and further dropping to 8.1% in the same period last year. This downward trend highlights the economic challenges the country faces, particularly in key sectors such as manufacturing and mining.The manufacturing sector, which constitutes over 17% of the total Gross Value Added (GVA) output, witnessed a sharp slowdown in growth. During the July-September quarter, manufacturing grew by just 2.2%, a significant drop from the 7% growth recorded in the April-June quarter and an even steeper decline from the impressive 14.3% growth seen in the same period last year. This contraction underscores the challenges posed by subdued demand, higher input costs, and disrupted supply chains.The mining and quarrying sector has been equally impacted, with extended rainfall playing a significant role in hampering activities. The sector recorded a contraction of 0.1% in the July-September quarter, a stark contrast to the 7.2% growth seen in the preceding quarter and the 11.1% growth achieved in the same period last year. This downturn reflects not only the adverse effects of climatic conditions but also potential challenges in investment and regulatory bottlenecks within the sector.These trends highlight a broader deceleration in economic momentum, raising concerns over the resilience of key industrial sectors and their ability to recover amidst ongoing domestic and global uncertainties.
