* NSE, BSE indexes down over 1% each
* Auto stocks, state-run lenders top losers
* GDP grew at weakest pace since 2013
Sept 3 (Reuters) - Indian shares dropped sharply on Tuesday, after data last week showed the economy grew at its weakest pace in over six years as consumer demand weakened and government spending slowed.
The broader NSE index was down 1.11% at 10,900.5 as of 0414 GMT, while the benchmark BSE index was 1.07% lower at 36,933.25. Indian markets were closed on Monday for a public holiday.
Meanwhile, stocks in Asia were bruised as the United States began imposing 15% tariffs on a variety of Chinese goods on Sunday as China initiated new duties on U.S. crude.
The Indian economy, the third largest in Asia, expanded just 5% year-on-year in the three months ended June - the lowest pace since March 2013, official data showed on Friday, far below the 5.7% forecast in a Reuters poll, suggesting the economy had lost momentum.
A separate private sector survey indicated that expansion in the country’s manufacturing sector hit its slowest in 15 months in August, as demand and output grew at their weakest pace in a year and cost pressures increased.
Auto stocks were beaten after top automakers reported a slump in August sales over the weekend.
The Nifty Auto index fell as much as 1.7%, with Tata Motors Ltd dropping 4.7% and Mahindra and Mahindra Ltd declining 3%.
The Nifty PSU Bank index, which tracks the country’s state-owned lenders, fell as much as 3.3% after the government announced a series of mergers involving 10 such banks to boost the struggling sector and revive economic growth.
Shares in Punjab National Bank, the biggest lender among the 10, slumped 6.3% to their lowest since Oct. 1.
Meanwhile, the Indian rupee weakened to 72.03 against the dollar, versus its close of 71.41 on Friday.
Reporting by Chris Thomas in Bengaluru; Editing by Rashmi Aich