Indicators
India Manufacturing Shows Signs of Stress, Economists Say
- Growth slowed in the second quarter and inflation remains high
- Government wants more foreign capital to boost manufacturing
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Contraction in the manufacturing sector signals stress in Asia’s third-largest economy, economists warn, after growth slowed in the second quarter amid rising prices and higher borrowing costs.
India’s gross domestic product grew at 6.3% in the July-September period, less than half of the preceding quarter’s 13.5%. But it is a sharp fall in the manufacturing sector, which contributes nearly 16% to India’s GDP, that has raised alarm bells.