India's economic growth slows more sharply than expected

Factors include higher food inflation and borrowing costs, weak real wage growth

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India's economy slowed much more than expected in July-September, expanding by only 5.4 per cent year on year as growth in manufacturing and consumption decelerated, data showed on Nov 29.

It was the slowest growth in gross domestic product (GDP) in seven quarters and well below a 6.5 per cent expansion projected by a Reuters poll and the central bank's estimate of 7 per cent.

Economists said private consumption, accounting for 60 per cent of GDP, has been hit by slower urban spending due to higher food inflation, high borrowing costs and weak real wage growth, despite a recovery in rural demand.