India’s GDP Growth Declines
India’s economy has recently joined the global slowdown club, recording a GDP growth rate of just 5.4% from July to September.
This figure is significantly below the predicted 6.5% and marks the slowest growth in nearly two years.
The decline has raised concerns among economists and policymakers who are closely monitoring the economic indicators.
Manufacturing Sector Struggles
One of the key contributors to this slowdown is the manufacturing sector, which includes industries such as steel, textiles, and IT hubs.
Manufacturing growth has plateaued at a mere 2.2%, down from a healthier 7% in the previous quarter.
This stark decrease reflects the broader challenges faced by manufacturers in maintaining production levels amidst rising costs.
Consumer Spending and Inflationary Pressures
While consumer spending saw a modest increase of 6%, it is important to note that inflation is currently at 6%.
Coupled with high loan rates, this situation has led to tighter wallets for many consumers, which could further impact economic growth.
As a result, experts are speculating that the Reserve Bank of India may take action by cutting interest rates soon. Will these cuts materialize in December? Only time will tell.
From- Reuters
