India’s Gross Domestic Product (GDP) growth rate in the quarter ending June 30, 2024 came in at 6.7% against the 7.8% growth posted in the previous quarter (January to March), according to the data released by the National Statistical Office (NSO) of Ministry of Statistics and Programme Implementation (MoSPI). The Q1 GDP growth of 6.7% is a tad lower than 8.2% growth in the country’s GDP in the same period last year. These figures are also
lower than the Reserve Bank of India’s (RBI) estimate of 7.1%, according to projections made in its latest monetary policy review.
The GDP growth has slowed down in the June quarter amid reduction in government capital expenditure due to elections in the country, combined with the decline in urban consumer sentiment. Analysts at various banks and brokerages had pegged the GDP for Q1FY25 to come in at 6-7.1%.
India’s Gross Value Added (GVA) growth for Q1FY25 slowed to 6.8%, compared to 8.3% in the same period last year, and 6.3% in the previous quarter, reflecting a deceleration across several key sectors.
- Agriculture recorded a modest growth of 2%, down from 3.7% YoY, but up from 0.6% in the previous quarter.
- Mining grew by 7.2%, slightly higher than 7% YoY and significantly up from 4.2% in the previous quarter.
- Manufacturing saw a 7% growth, improving from 5% YoY, but down from 8.9% in Q4FY24.
- Electricity surged by 10.4%, a substantial increase from 3.2% YoY and 7.7% in the previous quarter.
- Construction continued its strong performance with a 10.5% growth, compared to 8.6% YoY and 8.7% in Q4FY24.
- Trade, Hotels, Transport, and Communication grew by 5.7%, significantly lower than 9.7% YoY but slightly up from 5.1% in the previous quarter.
- Financial, Real Estate, and Professional Services grew by 7.1%, down from 12.6% YoY and 7.6% in Q4FY24.
- Public Administration, Defense, and Other Services posted a strong growth of 9.5%, up from 8.2% YoY and 7.8% in the previous quarter.