All demand segments witnessed slower growth, with private consumption, government consumption expenditure and imports recording the sharpest fall.

India’s real gross domestic product (GDP) grew by 4.4 per cent on-year in the third quarter (Q3) this fiscal, slower than 6.3 per cent in the previous quarter and 5.2 per cent in the same quarter in the last fiscal. Nominal GDP growth stood at 11 per cent due to slower inflation and real GDP growth, returning to its long-term trend, according to CRISIL.

On the supply side, growth in the manufacturing and services sectors slid, while growth in the agriculture, construction, mining and electricity sectors accelerated, CRISIL said in a release.

Private final consumption expenditure (PFCE) growth slowed to 2.1 per cent, from 8.8 per cent previous quarter, suggesting faltering domestic demand. This resonates with import growth plummeting to 10.9 per cent from 25.9 per cent, CRISIL noted.

While export growth also decelerated to 11.3 per cent from 12.3 per cent in Q3 FY23, the extent of slowdown was less than that of imports.

Exports began slowing down quicker than imports in Q2 as external demand started weakening earlier than domestic demand.

On the production side, gross value added (GVA) grew by 4.6 per cent in Q3 FY23 compared with 5.5 per cent in the previous quarter. Manufacturing growth saw the sharpest fall (minus 1.1 per cent vs minus 3.6 per cent), reflecting the hit from exports and waning domestic demand.

Fibre2Fashion News Desk (DS)