The negative news on India's growth front shows no signs of stopping. The economy, as was widely feared, has grown by just 5.3% in the second quarter vis a vis the same period last year. The little growth the economy has had is led by the services-sector activity despite slow industrial and agricultural activity.
The GDP growth represents a slowdown from the 5.5% year-on-year expansion seen in the April-June period. The figure is significantly lower than the 6.7% rate seen during July-September last. While agriculture grew 1.2% and manufacturing activity increased just 0.8% in the last quarter, improvement in services, responsible for about 55% of the country's output, pushed the overall growth rate higher.