Slowdown Threatens Indian Economy Even as Its Rich Keep Spending
- Growth is expected to decelerate sharply this fiscal year
- Consumer demand is seen weakening among middle class and poor
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India’s booming economy is the envy of other major markets. But beyond the hype and expectation, people who watch the country closely are flagging warning signs.
The nation is heading for a slowdown, analysts who cover it say, as rising inequality squeezes consumer spending among the poor — and the hundreds of millions in the middle class. The pessimism comes even after the latest growth figures blew past estimates last week, rounding off an expansion of more than 7% for the fiscal year.