India's economy slows sharply, adding pressure on central bank to cut rates

Record ID: 1859873

  • Title: India's economy slows sharply, adding pressure on central bank to cut rates
  • Date: 29th November 2024
  • Summary: ΤΗESSALONIKI, GREECE (NOVEMBER 30, 2024) (Reuters) (SOUNDBITE)(Greek) CITIZEN, APOSTOLOS, SAYING: “I am very much looking forward to its opening. This is an event that our city wants, this means of transport, it will unblock traffic on the streets”. (SOUNDBITE)(Greek) CITIZEN, DIMITRIS, SAYING: “It will significantly improve the quality of life. I believe that, in general,
  • Embargoed: 13th December 2024 14:41
  • Keywords: GDP India agriculture banks boost business currency dollar economy factory farmers finance foreign exchange government growth income tax industry international labourers markets money revenue robust rupees sectors source trade value
  • Location: NEW DELHI/MUMBAI, MAHARASHTRA/SURANA, VARANASI, KANPUR, UTTAR PRADESH/AMRITSAR, PUNJAB/AHMEDABAD, GUJARAT, INDIA
  • City: NEW DELHI/MUMBAI, MAHARASHTRA/SURANA, VARANASI, KANPUR, UTTAR PRADESH/AMRITSAR, PUNJAB/AHMEDABAD, GUJARAT, INDIA
  • Country: India
  • Topics: Asia / Pacific,Budget/Taxation/Revenue,Government/Politics
  • Reuters ID: LVA005L2QT6J3
  • Aspect Ratio: 16:9
  • Story Text: India's economic growth slowed much more than expected in the third quarter, hampered by weaker expansions in manufacturing and consumption, likely adding pressure on the central bank for interest rate cuts.
    Gross domestic output in the world's fifth-biggest economy rose by 5.4 per cent in July-September year-on-year, data showed on Friday, the slowest pace in seven quarters and below a Reuters poll of 6.5 per cent. In the previous quarter it grew 6.7 per cent.
    The gross value added (GVA), a more stable measure of economic activity, also saw a modest 5.6 per cent growth, easing from a 6.8 per cent increase in the previous quarter.
    India's chief economic adviser V. Anantha Nageswaran said the growth figure was disappointing amid a challenging global environment.
    The slowdown, visible across a number of sectors, was indeed most pronounced in manufacturing, where year-on-year growth dropped to 2.2 per cent compared with 7 per cent the previous quarter.
    Economists say inflation, now running at around 6 per cent, is biting into demand for goods ranging from soaps to shampoos to cars, particularly in urban areas. Private consumer spending rose 6.0 per cent from a year earlier, compared with 7.4 per cent in the previous quarter.
    The slowdown also came despite government spending rising 4.4 per cent year-on-year in July-September, compared with a 0.2 per cent contraction the previous quarter.
    Helped by a good monsoon, agricultural output did better, rising 3.5 per cent compared from 2 per cent growth the previous quarter.
    The government adviser said that growth prospects were still resilient and that rural demand would remain a supporting factor.
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