India’s GDP growth for the July-September 2024 quarter (Q2 FY25) was recorded at 5.4%, as per the latest data released by the National Statistical Office. Although this marks the slowest growth rate in seven quarters, India continues to be the world’s fastest-growing major economy. The growth rate fell short of analysts’ projections, which had estimated an increase between 6.2% and 6.9%.
The slowdown was primarily driven by weaker industrial performance, with the manufacturing sector growing only 2.2%, compared to the previous quarter’s 7% and expectations of 5%. Additionally, sectors like trade, hotels, transport, communication, and related services experienced growth of just 6%, below the anticipated 7-8%.
In comparison, India’s GDP had expanded by 6.7% in the April-June 2024 quarter (Q1 FY25) and by 8.1% during the corresponding period the previous year (Q2 FY24). Despite the sluggish growth, India’s GVA increased by 5.6% during the quarter, indicating a steady supply-side momentum.
Investment activities, as reflected in gross fixed capital formation (GFCF), saw a deceleration to 5.4%, totaling Rs 15.13 lakh crore, which signifies about 35% of GDP. Private final consumption expenditure (PFCE) grew 6% year-on-year, while government final consumption expenditure (GFCE) declined by 4.4% YoY to Rs 4 lakh crore.
Globally, the United States showed a GDP growth of 2.8% in the same period, the UK recorded a marginal rise of 0.1%, China’s economy grew by 4.6%, with challenges reaching a 5% full-year target, and Japan achieved a 0.9% growth. Despite these global trends, India remains at the forefront of major economies, maintaining its growth leadership.
Original Story https://www.news18.com/business/economy/indias-gdp-grows-at-5-4-remains-below-estimates-9139651.html
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