India's economy unexpectedly decelerated last quarter with GDP growth dipping below 6% as the impact of New Delhi's cash crackdown seemed to hurt manufacturing more than expected.
Prime Minister Narendra Modi announced last November the withdrawal of high-value bank notes constituting 86% of the currency in circulation to dredge up illegally stashed wealth. The move choked cash supply and hurt demand.
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Gross domestic product grew 5.7% in the three months ended June 30, according to government data issued Thursday. That was lower than the 6.1% expansion in the previous quarter and missed economists' expectations of a 6.6% increase.
With the latest deceleration, India has ceded its position as the world's fastest-growing large economy to China for the second-successive quarter. China's economy expanded 6.9% in the last two quarters.
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(END) Dow Jones Newswires
August 31, 2017 08:45 ET (12:45 GMT)