India’s economy grew 5.3 per cent in the September quarter, stuck at 3-year low

By Erika Kinetz

THE ASSOCIATED PRESS

MUMBAI, India — India’s economy grew 5.3 per cent in the September quarter, government data showed Friday, stuck at its lowest levels in three years as New Delhi struggles to enact reforms to kick-start investment and growth.

The number was in line with expectations.

Slowing growth complicates New Delhi’s efforts to create jobs for its exploding youth population and balance the budget, while paying for costly social programs in advance of national elections in 2014.

India’s economy grew 5.5 per cent during the June quarter, after expanding by 5.3 per cent in the March quarter. This is the slowest pace since the global recession, which dragged India’s economic growth down to 3.5 per cent for the January-March quarter of 2009.

“Our expectation is that there will be a pickup in the second half,” C. Rangarajan, chairman of the Prime Minister’s Economic Advisory Council, told CNBC-TV18. “We should be able to have a growth rate of 5.5 per cent or a little above that for the year as a whole.”

01:34ET 30-11-12