India’s Economic Gloom Continues

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By Trey Thoelcke Published

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In the three months that ended in June, the GDP growth of India languished around its lowest level in three years. The economy grew 5.5% in the quarter, government data indicated. That was just above the 5.3% posted in the previous quarter and slightly better than consensus expectations.

Weakened demand in the West has hampered exports, but overspending and a lack of reforms took the heaviest toll on the economy. Ratings agencies Fitch and Standard & Poor’s have threaten to downgrade India’s sovereign ratings to junk. And the Reserve Bank of India remains hawkish in the face of stubbornly high inflation.

The lack of growth is further bad news for Prime Minister Manmohan Singh, who struggles to escape a series of political scandals that have paralyzed his economic agenda. The government is struggling with the main opposition Bharatiya Janata Party (BJP) over sweetheart coal deals. The the BJP has refused to allow parliament to function until Singh quits, leaving a raft of bills, including a number of important economic reforms, bogged down in the legislature.

Poor monsoon rains have added to the economic gloom.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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