GDP growth slows in India

November 30, 2012: 3:38 AM ET
india gdp
India GDP grew at 5.3% in the latest quarter.
HONG KONG (CNNMoney)

The pace of economic growth in India slowed during the latest quarter, the government's ministry of statistics said Friday.

Gross domestic product, the broadest measure of a nation's economic health, grew at a rate of 5.3% from June to September compared to the previous year, the government said.

The slowdown marks the third straight quarter of GDP growth below 6% for India, which has struggled recently to resolve political disputes over proposed economic reforms. At 5.3%, the rate also matches a three-year low for the key indicator.

Still, the slower rate was in line with analyst expectations.

The International Monetary Fund said last month that the growth outlook for India is "unusually uncertain" after a disappointing first half of the year, caused in part by a sharp drop in consumer confidence. After years of rapid growth, the economy is expected to expand by only around 5% this year.

Related: India reforms entice foreign retailers

India's currency, the rupee, has lost value against the dollar in recent months, and elevated inflation levels have limited calls for lower interest rates.

Prime Minister Manmohan Singh has tried to institute reforms that would attract more foreign investment, but his efforts have been met with resistance from political opponents.

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