India's Economic Momentum Slows: A Closer Look at GDP Dynamics

India's economic growth dipped to a near two-year low at 5.4% in Q2 of the fiscal year, due to poor manufacturing and mining sector performance. Despite this, India remains the fastest-growing large economy. Various sectors showed mixed performances in growth, as per the NSO data released recently.

India's economic growth has decelerated to 5.4% in the July-September quarter, marking a near two-year low. This slowdown is primarily attributed to underperformance in the manufacturing and mining sectors, as reported by the National Statistical Office (NSO) on Friday.

The Gross Domestic Product (GDP) expanded by 8.1% in the corresponding quarter of the previous fiscal year. Despite the decline, India still holds the title of the fastest-growing major economy, with China's GDP growth reported at 4.6% for the same period.

Further insights from the NSO reveal a mixed sectoral performance. The agricultural sector witnessed a growth acceleration to 3.5%, while manufacturing growth slowed to 2.2%. The financial services sector saw a modest rise, in contrast to the significant contraction in mining and utilities. These dynamics reflect ongoing economic challenges and sectoral shifts.

(With inputs from agencies.)