India’s gross domestic product (GDP) grew 5.4 per cent during July-September 2024, according to the latest official data released on Friday. Though it is the slowest growth in seven quarters, India still remains the fastest major economy in the world.
The Q2 FY25 growth of 5.4 per cent is below analysts’ expectations, who had pegged the growth in the range of 6.2 per cent to 6.9 per cent.
“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.
Manufacturing mainly hit the overall numbers by growing 2.2 per cent in Q2FY25, as against 5 per cent expected. It had stood at 6.7 per cent in the last quarter and 8.1 per cent a year ago.
Trade, hotels, transport, communication and services related to broadcasting grew just 6 per cent, as against 7-8 per cent expected.
The country’s GDP had grown 6.7 per cent in the previous quarter of April-June 2024 (Q1 FY25). It had growth at 8.1 per cent in the year-ago period (Q2 FY24).
According to the latest data released by the National Statistical Office (NSO), India’s gross value added or GVA, which is GDP minus net product taxes and reflects growth in supply, also grew 5.6 per cent during July-September 2024.
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.
Meanwhile, during the July-September 2024 quarter, US GDP grew 2.8 per cent. The UK inched up just 0.1 per cent. China expanded by 4.6 per cent during the latest quarter (Q3) and is struggling to touch 5 per cent for the full FY25. Japan grew 0.9 per cent during the quarter.
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Source: NEWS18
