India’s GDP growth for Q2 FY25 fell to a seven-quarter low of 5.4% YoY, as compared to 8.1% YoY in Q2 FY24 and 6.7% in the previous quarter. According to CITI, industrial growth weakened sharply, offsetting resilience in services. While agriculture posted 3.5% growth, mining contracted 0.1%, and manufacturing slowed to 2.2%.
CITI lowered its FY25 GDP growth forecast to 6.4% from 7%, citing investment-driven deceleration and mixed activity data for October. The brokerage expects the RBI to acknowledge the need for growth support, with a potential CRR cut in December and a rate cut likely in February. However, high inflation may limit immediate action.
