India’s economy showed signs of slowing down in the July-September quarter of 2024-25, as GDP growth dipped to 5.4%. This marked the lowest growth rate in two years for India. The decline came amid the sluggish performance in key sectors like manufacturing and mining. This slowdown follows an impressive 8.1% growth in the same quarter last year. Despite this dip, India continues to hold the title of the world’s fastest-growing major economy. India continues to remain the fastest-growing large economy, as per the data showed on Friday. The previous low […]
GDP Of India Slowed To 5.4% In July-September
India’s economy showed signs of slowing down in the July-September quarter of 2024-25, as GDP growth dipped to 5.4%. This marked the lowest growth rate in two years for India. The decline came amid the sluggish performance in key sectors like manufacturing and mining. This slowdown follows an impressive 8.1% growth in the same quarter last year.
Despite this dip, India continues to hold the title of the world’s fastest-growing major economy. India continues to remain the fastest-growing large economy, as per the data showed on Friday. The previous low level of GDP growth at 4.3 per cent was also recorded in the third quarter (October-December 2022) of financial year 2022-23.
However China, for instance, posted a growth of just 4.6% in the same period, further highlighting India’s relative strength.
Read More: Delhi Announces Major Pension Expansion: 80,000 Seniors To Benefit From Old-Age Pension
As per the National Statistical Office (NSO) data, India’s agricultural sector performed better than expected, with Gross Value Added (GVA) rising by 3.5%, a notable improvement from 1.7% in the same quarter last year.
However, the manufacturing sector faced a significant slowdown, with GVA growing by only 2.2%, compared to a robust 14.3% expansion in Q2 of 2023. Mining and quarrying, too, struggled, recording a minimal growth of just 0.01%. With a stark contrast of growth to 11.1% growth from previous year.
Other sectors, including financial services, real estate, and professional services, showed moderate growth of 6.7%, up from 6.2% a year ago. The utility sector, encompassing electricity, gas, and water supply, grew by just 3.3%, down from the 10.5% growth seen last year. The construction sector also witnessed a slowdown, expanding by 7.7% compared to 13.6% in the same period last year. The growth in gross domestic product (GDP) during the April-June quarter of 2024-25 remained unchanged at 6.7 per cent.
NSO released a statement saying that, “Real GDP or GDP at constant prices in Q2 of 2024-25 is estimated at ₹ 44.10 lakh crore, against ₹ 41.86 lakh crore in Q2 of 2023-24, showing a growth rate of 5.4 per cent.”
Looking at the first half of the fiscal year, the economy posted a 6% growth in real GDP. This amounted to ₹87.74 lakh crore in April-September 2024-25, up from ₹82.77 lakh crore in the same period last year. Whereas the nominal GDP for the first half of the year reached up to ₹153.91 lakh crore. This reflects an 8.9% increase compared to ₹141.40 lakh crore in H1 during April-September 2023-24.
In absolute terms, the fiscal deficit the gap between government’s expenditure and revenue was at ₹ 7,50,824 crore during April-October period. As per the data released by the Controller General of Accounts (CGA).
Though the deficit stood at 45 per cent of the Budget Estimates (BE) in the corresponding period of 2023-24.
In summary, while India’s GDP growth has slowed in recent months. The country remains on track to be one of the fastest-growing economies globally, despite challenges in key industrial sectors.
