New Delhi: India’s economic growth slowed n the July-September period of FY25. India’s gross domestic product (GDP) growth dropped to a seven-quarter low of 5.4 per cent during July-September 2024.
‘Real GDP has been estimated to grow by 5.4% in Q2 of FY 2024-25 over the growth rate of 8.1% in Q2 of FY 2023-24,’ the finance ministry said in a statement.
The data released by the National Statistical Office showed gross value added (GVA) grew at 5.6 per cent as the net taxes growth declined to a seven-quarter low of 2.7 per cent in Q2 of FY25. The difference between the gross domestic product (GDP) and GVA is net taxes. Nominal GDP growth in the second quarter and first half of FY25 amounts to only 8 per cent and 8.9 per cent.
During the first half (April-September) of this financial year, the gross domestic product (GDP) grew at 6 per cent compared to 8.2 per cent during the same period a year ago. The slowdown in the September quarter was led by the manufacturing sector, which registered only 2.2 per cent growth along with electricity that grew 3.3 per cent in the quarter. The construction sector also decelerated, growing at 7.7 per cent in September quarter compared to 10.5 per cent in the preceding quarter.
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The services sector also marginally slowed down in Q2 at 7.1 per cent, compared to 7.2 per cent in the preceding quarter. Among its three components, trade, hotels, transport, communication services (6 per cent) picked up pace sequentially while financial, real estate and professional services (6.7 per cent) as well as public administration, defence and other services (9.2 per cent) slowed down in the September quarter compared to the preceding quarter.
During the September quarter, agricultural growth (3.5 per cent) stood out with growth firming up to a five-quarter high at 3.5 per cent compared to 2 per cent in the preceding quarter as kharif sowing ended up well. Mining and quarrying (-0.1 per cent) contracted due to unseasonal rains.
Exports growth (goods and services) moderated to 2.8 per cent in the September quarter from 8.7 per cent in the preceding quarter.
Gross fixed capital formation (GFCF), which is an indicator of investment activity in the country, slowed to 5.4 per cent to Rs 15.13 lakh crore during the September 2024 quarter. GFCF accounts for around 35 per cent of the GDP.
Private final consumption expenditure (PFCE) grew 6 per cent year-on-year to Rs 24.82 lakh crore in Q1 FY25. Government final consumption expenditure (GFCE) fell 4.4 per cent YoY to Rs 4 lakh crore.
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