India’s economic recovery hit a wall in third quarter as industrial activity lost momentum and patchy monsoon rains hurt farm output, gross domestic product (GDP) data due Friday is expected to show.
Growth in Asia’s third largest economy decelerated to between 5-5.3 percent in the July-September quarter, down from 5.7 percent in the previous three months, according to analysts’ forecasts. “Signs are the economy hit a soft patch,” Radhika Rao, economist at DBS wrote in a note.
Industrial output growth is expected to have slowed sharply to 1.1 percent on year in the third quarter, from 4 percent in the previous three months, according to Goldman Sachs. Meanwhile, agricultural output growth is forecast to have weakened to 1 percent, from 3.8 percent in the previous quarter.