India's growth slowed in December quarter on weakness in manufacturing

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India's growth slowed in December quarter on weakness in manufacturing
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India's economic growth slowed further in the December quarter as pent up demand eased and weakness in the manufacturing sector continued.

Even though a weaker global economy is likely to pull down India's growth to near 6.4% next year, the International Monetary Fund and the World Bank project India to be the fastest-growing major economy in 2023.India's manufacturing sector shrank by 1.1% year-on-year in the third quarter, a second straight contraction reflecting lower profit margins and weaker exports.

"A possibility of additional interest rate hikes coupled with a slowdown in overall demand pose a further downside risk to manufacturing activity."

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