NEW DELHI (AP) — India’s economic growth slipped to 4.5%, its slowest pace in six years, in the July-September quarter, with the labor-intensive manufacturing sector contracting.
The Ministry of Statistics and Program Implementation said Friday that manufacturing output shrank by 1% compared to 6.9% growth a year earlier. It said consumer demand and private investment weakened and a global slowdown hit India’s exports.
The economy grew 5% in the April-June quarter.
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Many economists believe Prime Minister Narendra Modi's demonetization of currency in 2016 and a hasty rollout of a goods and services tax inflicted blows to manufacturing, especially the auto sector.
According to the Auto Component Manufacturers Association of India, car deliveries in August dropped 41% from a year earlier while truck and bus sales fell 39%.