Explained: Why India’s economic growth slowed in the July-September quarter -Nachiket Deuskar

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The fading away of the base effect and a contraction in the manufacturing sector led to the falling numbers.

India’s gross domestic product grew by 6.3% in the July-September quarter of financial year 2022-’23, the Union Ministry of Statistics and Programme Implementation said on Wednesday. This was a sharp decrease from the 13.5% growth in the previous April-June quarter.

In the corresponding July-September quarter of financial year 2021-’22, the growth rate was 8.4%.

The reason for this slowing growth, experts suggested, was the end of the economic bounceback after the Covid-19 pandemic as well as a contraction in the manufacturing and mining sectors.

The fact that growth has halved compared to the first quarter of this fiscal year has raised concerns about the state of the Indian economy.

Base effect fades

As observers noted, the slowing of growth was expected in this quarter. The numbers were in line with the projections of 6.1% to 6.3% made by the Reserve Bank of India earlier this month, and slightly better than the 6.2% growth rate Bloomberg and Reuters surveys had predicted.

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