NEW DELHI—India’s economic growth slipped to 4.5 percent, its slowest pace in six years, in the July to September quarter, with the labor-intensive manufacturing sector contracting.
The Ministry of Statistics and Program Implementation said on Friday that manufacturing output shrank by 1 percent compared to 6.9- percent growth a year earlier. It said consumer demand and private investment weakened and a global slowdown hit India’s exports.
The economy grew 5 percent in the April to June quarter.
Many economists believe Prime Minister Narendra Modi’s demonetization of currency in 2016, and a hasty rollout of a goods and services tax inflicted blows to manufacturing, especially the auto sector.
According to the Auto Component Manufacturers Association of India, car deliveries in August dropped 41 percent from a year earlier while truck and bus sales fell 39 percent.
Image credits: AP/Channi Anand