NEW DELHI - India posted annual economic growth of 6.3% in its July-September quarter, far slower than the 13.5% growth reported in the previous three months as distortions caused by COVID-19 lockdowns faded in Asia's third-largest economy.

The growth rate was above the 6.2% forecast by economists for the quarter, the second of India's 2022/23 financial year, in a Reuters poll.

Government capital spending increased more than 40% as the federal government stepped up expenditure on infrastructure from roads to railways.

Among key sectors, agricultural output rose 4.6% while manufacturing fell 4.3% and the employment-generating construction sector saw a 6.6% annual increase in activity.

(Reporting by Aftab Ahmed and Manoj Kumar; Editing by Andrew Heavens)