India’s economy shrunk to 5.7% during Q2 this year, according to government data. In the first quarter of the year, the country’s growth domestic product was 6.1%. In Q2 last year, GDP was 7.9%.
By industry, manufacturing saw the biggest growth slow down expanding at just 1.2%, compared to 10.7% the year before. Growth in the financial services, insurance, real estate and professional services sectors also slumped from 9.4% to 6.4%.
Despite the economic slump. India is still the fastest-growing large economy in the world, with its US$150 billion information technology (IT) industry.
India has been successful in technology partly due to the nation being home to one of the world’s most active start-up ecosystems, with equity deal activity increasing for the fourth consecutive year in 2016, according to CB Insights.