NEW DELHI: The fastest emerging economy of the world has grounded underNarendra Modi’s rule, according to the official data released here onFriday.
Indian economy expanded at its weakest pace in more than six years withgrowth at 4.5 percent for July to September three months, while theeconomy’s growth rate in the same period last year remained seven percent,official data showed.
The growth rate of the economy also remained lower than April to June 2019three month, which was five percent.
The economists were of the opinion that the economy is passing through adeclining growth momentum and there is no easy way out, principal economistat Fitch India Ratings said.
The pace of economic growth fell below 5 percent for the first time sincethe quarter ending March 2013 when it measured 4.3 percent.
That slowdown has been visible across the country including in the lowgrowth of utilities, including electricity – 3.6 percent, down from 8.7percent a year earlier – indicating a slowdown in manufacturing, economistssaid.
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The auto sector is undergoing the slow down with over 13 percent with crashin demand for vehicles.
The Indian economy will remain under the same stress in the remainingperiod of the ongoing year, economists opined.
The slowdown comes on the back of controversial reforms by the Modigovernment in the past few years including a sudden clampdown in November2016 on more than 80 percent of the currency in circulation in a bid tocrack down on the black market, followed by a massive sales tax overhaulthe next summer that created a lot of confusion and compliance burdens,especially for small traders who account for about a third of the economy.-APP/AFP
