India’s economic growth slowed further in the three months to September, and the pace of expansion was the weakest in over six years as manufacturing and exports remained weak amid the global slowdown, official data showed on Friday.
Gross domestic product grew 4.5 percent year-on-year in the July to September quarter after a 5 percent expansion in the three months to June. Economists had forecast 4.7 percent growth for the September quarter.
In the same quarter of 2018-19, growth was 7 percent.
In the April to September period, the economy grew 4.8 percent versus 7.5 percent in the previous year.
The Indian economy has been loosing steam over the past few quarters. In the March quarter, India’s growth rate fell behind China’s for the first time in nearly two years.
This week, Finance Minister Nirmala Sitharaman confirmed that there is a slowdown in the economy, but ruled out the possibility of a recession.
Prime Minister Narendra Modi’s government announced several stimulus measures, such as the corporate tax rate cut, to boost the economy and the Reserve Bank of India has slashed interest rates several times this year. However, a sustainable revival in economic activity is yet to be seen.
In an attempt to reduce the fiscal deficit, the government is trying to sell its stake in several public sector companies, including BPCL. The privatization of the refinery owner is facing backlash from employees who fear job cuts and loss of benefits.