New Delhi: Growth ticked slightly lower in Q3FY16 by 7.3% as compared to 7.4% in Q2FY16. The previous quarter GDP has been revised to 7.7%.
The growth got support from a favourable base effect, as GDP in Q3FY15 grew by 6.6%. Domestic demand witnessed during the festival season supported growth during the quarter, even as global headwinds have had an adverse impact on manufacturing and exports.
This is faster than 6.8% growth posted by China in the same quarter.
Investment activity has been muted due to low capacity utilisation in several manufacturing sectors, highly leveraged balance sheets of infrastructure companies and stretched balance sheets of banks.