SEVERE WX : Winter Weather Advisory View Alerts
CLOSINGS: View Closings

India's economy just suffered a sharp slowdown

India's economy has downshifted from warp speed.Gross domestic product expanded 7.1% in the quarter e...

Posted: Nov 30, 2018 5:55 PM
Updated: Nov 30, 2018 5:55 PM

India's economy has downshifted from warp speed.

Gross domestic product expanded 7.1% in the quarter ended September, according to official data. That's a big step down from 8.2% growth in the previous quarter.

Asia

Business, economy and trade

Continents and regions

Economic conditions

Economic decline

Economy and economic indicators

India

South Asia

Elections and campaigns

Government and public administration

Politics

The slowdown was sharper than analysts had expected. But the reduced rate still places India ahead of China — which grew at 6.5% over the same period — as the world's fastest-growing major economy.

India's economic performance is being closely watched as next year's general election looms into view. Prime Minister Narendra Modi won office in 2014 after a campaign in which he promised to boost India's economy and create millions of jobs.

Shilan Shah, an economist at Capital Economics, cautioned that India's GDP statistics are not always the most reliable. But he said recent data on industrial production and vehicles sales also indicated weaker growth.

Still, the torrid pace of expansion in the previous quarter would have been difficult to maintain. Shah said he expects growth to remain at healthy levels.

"The economy should continue to expand rapidly over the coming months, supported by looser fiscal policy ahead of next year's general election," he said.

Pranjul Bhandari, chief India economist at HSBC, said that growth was likely to remain above 7% for the next few quarters, a pace that can be sustained "without stoking macroeconomic instability."

Some of the biggest pressures on the Indian economy have eased in recent weeks.

A 35% drop in oil prices since early October has helped India, which is one of the world's top energy importers. The rupee, which hit a series of record lows against the dollar this year, strengthened more than 5% in the past month.

Shah said that India's central bank, which held off on raising interest rates last month after two hikes earlier this year, will likely keep them unchanged again when it meets next week.

New York Coronavirus Cases

County data is updated nightly.

Cases: 1358707

Reported Deaths: 42726
CountyCasesDeaths
Queens1699418013
Kings1666348246
Suffolk1377282723
Nassau1231422635
Bronx1140065358
Westchester906651858
New York815113516
Erie551841422
Richmond479811418
Monroe46476836
Rockland33532833
Orange30909670
Onondaga29264555
Dutchess18235343
Oneida17856378
Albany17798280
Niagara13056267
Broome12104282
Saratoga10109108
Schenectady9373145
Ulster8388205
Rensselaer7574114
Putnam707177
Chautauqua609680
Chemung5889112
Oswego521880
Ontario499983
Steuben4835133
Cayuga474977
St. Lawrence411364
Sullivan406853
Herkimer398377
Wayne396158
Genesee3894104
Jefferson367437
Cattaraugus364264
Madison335477
Livingston291143
Tompkins286428
Columbia278777
Cortland277055
Clinton250520
Allegany249675
Montgomery249680
Fulton239161
Tioga238054
Wyoming236445
Warren232144
Greene223366
Orleans206274
Chenango195950
Otsego190127
Washington173528
Lewis167725
Franklin13819
Seneca133848
Delaware115929
Essex105621
Schoharie9908
Yates89922
Schuyler76710
Hamilton1711
Unassigned82169
Out of NY0176
Rome
Cloudy
24° wxIcon
Hi: 26° Lo: 20°
Feels Like: 14°
Binghamton
Cloudy
23° wxIcon
Hi: 27° Lo: 22°
Feels Like: 12°
Rome
Cloudy
24° wxIcon
Hi: 28° Lo: 19°
Feels Like: 14°
Rome
Cloudy
24° wxIcon
Hi: 22° Lo: 10°
Feels Like: 14°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
2021 Golfer's Paradise Card - 21 Courses for only $99.99
Saluting Those Who Are Proud 2 Serve