What Happened: Passenger vehicle sales in India fell by 30.9 percent in July, compared to the same period in 2018, Reuters reported Aug. 13.
Why It Matters: The problems afflicting India's automobile sector reflect the country's broader economic headwinds, which include tight credit as a result of India's so-called "shadow banking" crisis and a slowdown in economic growth.
Background: India's gross domestic product grew by 5.8 percent during the fourth quarter of its fiscal year (January through March 2019), marking its slowest growth rate in almost five years.
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