India's economy—as measured by GDP or gross domestic produce—grew 6.9% in the July-September quarter, compared to a 7.7% growth during the same period last year. This is the slowest growth in nine quarters, as the economy grapples with runaway inflation, high interest rates, weak rupee and falling industrial output.
The decline was on expected lines, with the average of a CNBC-TV18 poll estimating it at 6.9%. Equity indices trimmed their losses immediately after the announcement, indicating that the fall was not as bad as feared.
The figure would have been even worse, but for a 9.3% growth in the services sector. Mining and manufacturing were the worst performing sectors, with mining logging a de-growth of 2.9% versus a positive growth of 8% last year. Manufacturing grew 2.7% versus 7.8%, farm sector growth fell to 3.2% from 5.4%, and the construction sector declined to 4.3% from 6.7%.
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