The FINANCIAL — India’s economic expansion decelerated to 7% year-over-year in the quarter ended June 30, highlighting the challenges Asia’s third-largest economy faces as it tries to gain momentum, according to Nasdaq.
The growth in gross domestic product was slower than the preceding quarter’s 7.5% expansion and also weaker than the 7.4% average forecast by economists polled by The Wall Street Journal.
India’s recent economic performance has stoked both optimism and skepticism. The government earlier this year revised its methodology for measuring GDP, causing official readings of the last few years’ growth to jump.
A battery of other indicators, from trade to industrial production, however, has given the impression of an economy in only mild recovery.
“Agriculture has performed better than expected while industry too looks to have done reasonably well,” said Sujan Hajra, chief economist at Anand Rathi Securities. “The drag has come from the services sector, but that in itself should not be a cause for concern.”
Discussion about this post