India's Growth Slowdown: Manufacturing Stumbles Amid 5.4% GDP Expansion

India's economic growth has slowed to a near two-year low of 5.4% in the July-September quarter, largely due to a significant decline in the manufacturing sector. Despite this, India continues as the fastest-growing major economy, outpacing China's growth of 4.6% in the same period.

India's economic expansion has decelerated to a near two-year low of 5.4% in the July-September quarter, according to official statistics released. This marks a significant decline from the 8.1% growth recorded in the year-ago period, primarily attributed to a waning performance in the manufacturing sector.

In comparison, China reported a GDP growth of 4.6% in the same timeframe, indicating that India remains the fastest-growing major economy globally. Despite this position, the figures reflect a downward trend, with GDP growth dipping to 4.3% last noted in the October-December quarter of 2022.

However, the agriculture sector showed hope as its Gross Value Added (GVA) surged to 3.5% from the previous year's 1.7% in the recent quarter. Yet, manufacturing saw a sharp slowdown, with GVA growth falling dramatically to 2.2% compared to 14.3% a year prior. As of now, India's GDP growth stands at 6% for the first half of 2024-25, compared to 8.2% for the same period the previous year.

(With inputs from agencies.)