India Inc.'s double-digit profit drop reflects slackening demand

Weak spending pervades the economy, from steel to consumer products

20190829 supermarket in Mumbai

Economists say consumer sentiment has been weak since early 2018. (Photo by Ken Kobayashi) 

KEN KOYANAGI, Editor-at-large, Nikkei Asian Review and ROSEMARY MARANDI, Nikkei staff writer

MUMBAI -- Indian corporate earnings fell sharply in the April-June quarter, marking the first double-digit drop in combined net profit in two years.

The decline reflects sluggish domestic consumption and the global economic slowdown. Lackluster earnings, in turn, may lead to a prolonged slump in corporate investment and job creation, weighing on economic growth for longer than expected.

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