Sunday 8 December, 2019

India’s economic growth slips to 4.5%; lowest in 6 years

An Indian labourer carries a sack of onions at a wholesale market on the outskirts of Jammu, India, November 29, 2019. India’s economic growth has slipped to 4.5%, the slowest annual pace in six years, in the July-September quarter with labor-intensive manufacturing sector registering a negative growth. (AP Photo/Channi Anand)

An Indian labourer carries a sack of onions at a wholesale market on the outskirts of Jammu, India, November 29, 2019. India’s economic growth has slipped to 4.5%, the slowest annual pace in six years, in the July-September quarter with labor-intensive manufacturing sector registering a negative growth. (AP Photo/Channi Anand)

India’s economic growth slipped to 4.5 percent, its slowest pace in six years, in the July-September quarter, with the labour-intensive manufacturing sector contracting.

The Ministry of Statistics and Program Implementation said Friday that manufacturing output fell by one percent compared to 6.9 percent growth a year earlier. It said consumer demand and private investment weakened and a global slowdown hit India’s exports.

The economy grew five percent in the April-June quarter.

Many economists believe Prime Minister Narendra Modi's demonetisation of currency in 2016 and a hasty rollout of a goods and services tax inflicted blows to manufacturing, especially the auto sector.

According to the Auto Component Manufacturers Association of India, car deliveries in August dropped 41 percent from a year earlier while truck and bus sales fell 39 percent.

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