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Cars and Shampoo Tell a Tale of India's Slowing Consumption

  • Economic slowdown may presist for a year, says Credit Suisse
  • Fourth-quarter growth forecast at 6.5%, slowest since mid-2017
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Photographer: Dhiraj Singh/Bloomberg
Updated on

India’s consumers are being tested after helping drive the fastest-growing major economy.

More cautious spending on everything from shampoo to cars and travel threaten to weaken what’s been the backbone of the economy, contributing about three-fifths of gross domestic product. The pullback has acted as a drag on growth, which is predicted to have slowed for a fourth consecutive quarter to 6.5% in the three months to March, the weakest pace since mid-2017 and almost on par with China.