ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

India's economic growth slows to 7.1%

Latest GDP reading down from 8.2%, a blow for Modi as elections near

The rupee's sharp decline and a liquidity crisis in the once-hot shadow banking sector have weakened consumption and investment.   © Reuters

NEW DELHI -- India's economic growth softened to 7.1% for the three months ended in September, a slowdown from the previous quarter and a result that could spell trouble for Prime Minister Narendra Modi ahead of upcoming elections.

Blame was placed on factors such as the rupee's sharp depreciation and a liquidity crisis in the so-called shadow banking sector, which had been playing a big role in India's growth story but is now saddled with souring assets.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more