India's Economy: Speed Bump on Growth Road

India's economic growth dropped to 5.4% in the July-September quarter, its slowest in nearly two years, due to weak manufacturing and mining sectors. Despite this, India remained the fastest-growing major economy compared to China. Some sectors like agriculture showed resilience, recording accelerated growth.

India's economic momentum took a hit as growth slowed to 5.4% in the July-September quarter, marking the lowest in nearly two years. This decline is attributed to sluggish manufacturing and mining performances alongside reduced consumer spending.

Despite the downturn, India retained its status as the fastest-growing major economy, outpacing China, which reported a 4.6% growth. Bright spots in the Indian economy included agriculture and construction sectors, showing accelerated growth rates.

Analysts from ICRA noted the unexpected dip in GDP was sharper than anticipated. The National Statistical Office revealed that while agriculture's growth improved, sectors like manufacturing experienced significant slowdowns, highlighting the varied performance across industries.

(With inputs from agencies.)