India’s GDP Growth Slows as Higher Interest Rates Take Toll

  • Manufacturing contracted for a second straight quarter
  • Fiscal year 2023 growth estimated at 7%, same as Jan. view
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India’s economy fared below expectations in the three months through December as a gloomy global outlook and rising borrowing costs hurt manufacturing and consumption.

Gross domestic product rose 4.4% from a year ago last quarter, according to data released by the Statistics Ministry Tuesday. That compares with the 4.7% median estimate in a Bloomberg survey and 6.3% gain in July to September. For the fiscal year ending March 31, the ministry maintained its estimate for a 7% growth as GDP for the prior year expanded a revised 9.1%.