India's GDP growth in the July-September quarter unexpectedly slowed to 5.4 percent due to declines in private consumption and capital formation.

This decline in consumption, which has historically been a key driver of economic growth, raises concerns about the country's future economic potential. Analysts attribute this consumption weakness to factors such as stagnant wage growth. The lack of wage growth directly affects consumers' ability to spend, indicating that without improvements in income levels, a strong recovery in consumption may be difficult to achieve.