New Delhi: India’s GDP growth dropped to 6.7% in April-June this year, the lowest in a quarter, compared to 8.2% in the same period last year. This slowdown is mainly due to weak performance in the farm sector. Previously, the growth rate had been above 7% in earlier quarters. The lowest GDP growth before this was 6.2% in January-March 2023.
India continues to be the fastest-growing major economy, with GDP growth at 4.7% for the April-June quarter. The agriculture sector grew by 2% in this period, down from 3.7% in the same quarter last year, according to data from the National Statistical Office (NSO) released on Friday.
🚨BREAKING: India’s GDP Growth Slumps to 5-Quarter Low!⚠️
– GDP growth falls sharply to 6.7% in Q1 FY25, lowest in 5 quarters! 📉
– Major slowdown from 8.2% last year and below RBI forecast of 7.2%! 📊
– Warning signs for the economy? Is a policy shift coming? 🧐… pic.twitter.com/nndbTDmOCb
— Bhwani Shankar (@BhwaniShankar1) August 30, 2024
However, the manufacturing sector grew by 7% in the first quarter of this fiscal year, up from 5% in the same period last year.
Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank, told Reuters that although GDP growth for Q1 FY25 was weaker than expected, Gross Value Added (GVA) remains strong with non-farm growth staying steady. She said they still expect GDP growth of 6.9% for FY 2025, driven mainly by rural demand and government spending, but they will keep an eye on potential slowdowns in urban demand, private investment, and global economic trends.
GVA Growth Slows, Real GDP Up 6.7% In Q1
The growth in Gross Value Added (GVA) for ‘financial, real estate, and professional services’ has dropped to 7.1% from 12.6% in the same quarter last year.
The National Statistical Office (NSO) reported that real GDP for Q1 2024-25 is ₹43.64 lakh crore, up from ₹40.91 lakh crore in Q1 2023-24, reflecting a 6.7% growth.
The sector covering electricity, gas, water, and other utilities grew by 10.4%, compared to 3.2% last year. Construction expanded by 10.5%, up from 8.6% a year earlier. However, trade, hotels, transport, communication, and broadcasting services grew more slowly at 5.7%, down from 9.7% last year.
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