India GDP Growth Slows To 6.7% In April-June Quarter: Official Data

Key Takeaways

• India's GDP growth slowed to 6.7% in the April-June quarter of 2022, down from 8.7% in the previous quarter.
• The slowdown was driven by a decline in manufacturing and construction activity.
• The government has taken steps to address the slowdown, including cutting interest rates and increasing infrastructure spending.

Slowdown Driven by Manufacturing and Construction

The slowdown in GDP growth was largely due to a decline in manufacturing and construction activity. Manufacturing output fell by 0.1% in the April-June quarter, while construction activity grew by only 2.5%, compared to 13.8% in the previous quarter.

Government Takes Steps to Address Slowdown

The government has taken steps to address the slowdown, including cutting interest rates and increasing infrastructure spending. The central bank has cut interest rates by 50 basis points since April, and the government has announced a number of infrastructure projects, including the construction of new highways and railways.

Outlook for Future Growth

The outlook for future growth is mixed. Some economists believe that the slowdown is temporary and that growth will rebound in the coming quarters. Others believe that the slowdown is more structural and that growth will remain subdued in the medium term.

Conclusion

The slowdown in GDP growth in the April-June quarter is a cause for concern, but it is not yet clear if it is a temporary or more structural problem. The government has taken steps to address the slowdown, but it remains to be seen if these measures will be sufficient to boost growth in the coming quarters.