Indian GDP Growth Drops Below 7%

The Indian economy expanded at its slowest pace in more than two years in the July-September quarter. Hurt by high local borrowing costs and a deepening euro-zone crisis, sparking growth concerns that could lead to an early change in the central bank’s tight monetary stance.

The Indian government said on Wednesday that their gross domestic product grew 6.9% from the year earlier. This reading was in line with the median estimate in a poll of 19 economists, but this reading was still lower that the 7.7% increase in the April-June quarter as manufacturing slowed sharply and mining output fell. The economy had expanded 7.8% in the January-March quarter. “We aren’t comfortable with the reading,” Finance Secretary R.S. Gujral told reporters.

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