WHAT'S INDIA'S DECLINING ECONOMIC GROWTH TELLING US

India's GDP growth rate for the October-December quarter declined to 4.4% — down from 6.3% recorded in the second, July-September, quarter

GDP had grown at 13.5% in the April-June quarter. This means the economic growth rate has declined in the two consecutive quarters.

The economy is expected to grow at 7% in 2022-23, the National Statistical Office (NSO) said in its second advance estimate of national accounts

The annual GDP growth rate for 2021-22 was revised to 9.1% against the earlier estimate of 8.7%.

The sharp fall in year-on-year growth rate is partly due to a fading of pandemic-induced base effect which had contributed towards higher growth figures in fiscal 2021-22.

The second quarterly consecutive decline in GDP growth rate comes when India is being looked upon as the 'bright spot' amid persistent fears of global slowdown and recession

The manufacturing sector continues to disappoint. It shrank by 1.1% year-on-year in the quarter, a second straight contraction reflecting weakness in consumer demand and exports

Electricity, gas, water supply and other utility services expanded by 8.2% as against 6% last quarter.

Construction improved to 8.4% from 5.8% in Q2. Trade, hotels and transport fell to 9.7%

Impact: With the recovery on a shaky ground, further tightening of bank rates is expected. But this would amplify downside risks to growth.