GDP growth slows to 15-month low of 6.7% in April-June
The Hindu
India's GDP growth slows to 6.7% in Q1 FY2025, led by poor performance in agriculture and services sectors.
India's economic growth slowed to a 15-month low of 6.7% in April-June 2024-25, mainly due to poor performance of the agriculture and services sectors, government data showed on Friday (August 30, 2024).
The gross domestic product (GDP) expanded by 8.2% in the April-June quarter of 2022-23.
India, however, remained the fastest-growing major economy, as China posted a 4.7% growth in April-June 2024.
The previous low of 6.2% was recorded in the January-March quarter of 2023.
"India’s GDP growth expectedly slowed down in Q1 FY2025 relative to Q4 FY2024 (to a five-quarter low of 6.7% from 7.8%), even as the GVA growth surprisingly accelerated between these quarters (to 6.8% from 6.3%). This divergent trend was led by the normalisation of the growth in net indirect taxes, and the slowdown in the GDP growth is not a cause for alarm, in our view," said Icra Chief Economist, Head, research & outreach, Aditi Nayar said.
According to the National Statistical Office (NSO) data, the agriculture sector gross value added (GVA) growth decelerated to 2% from 3.7% in the April-June quarter of 2023-24.
The expansion in 'financial, real estate and professional services' GVA too slowed to 7.1% from 12.6% in the year-ago quarter.