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.
GDP 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.
Meanwhile, output of eight core infrastructure industries contracted by a record 5.8 percent in October as a broad-based decline gripped almost all industries.
Cumulative growth till October in the current fiscal year stood at only 0.2 percent, compared with 5.4 percent in the previous year.
As economic growth slows sharply, the Reserve Bank of India (RBI) is expected to cut interest rates in the forthcoming monetary policy review on December 5.
There is some good news on the revenue front as Goods and Services Tax (GST) collection reversed a two-month contraction to cross the Rs. 1 trillion mark in November on the back of festival demand and implementation of anti-evasion measures.
Telecom stocks may rise across the board today after Vodafone Idea, Bharti Airtel and Reliance Jio all hiked mobile and data tariffs by up to 42 percent in an attempt to tide over the crisis in the telecom sector.
Asian stocks are trading higher this morning after official data showed China’s November factory activity rebounded for the first time in seven months. A private survey of Chinese factory activity also came in stronger than expected.
On the trade front, Axios reported Sunday, citing sources that