India’s growth dips to two-year low 6.9 percent

India’s economy in the July to September quarter expanded at its slowest pace in over two years to 6.9 percent year-on-year compared to 8.4 percent for the same period last year.

Data released Wednesday by the Central Statistics Office showed that manufacturing experienced a sharp decline, growing only 2.7 percent, while mining contracted by 2.9 percent following a 1.8 percent growth in the preceding quarter.

The slowdown was attributed to rising interest rates, high inflation and global capital markets, the government said. The Reserve Bank of India has hiked rates 13 times since March 2010 to restrain inflation.