India’s real GDP growth slumps to 5.4%

The country’s GDP growth was 6.7 per cent in the April-June quarter and 8.1 per cent in the year-ago period, according to National Statistical Office

by e4m Staff
Published: Nov 29, 2024 6:53 PM | 2 min read

India’s real Gross Domestic Product (GDP) growth slumped to a multi-quarter low of 5.4% in the July to September 2024 quarter (Q2 of 2024-25), as per the National Statistical Office (NSO). The country’s GDP growth was 6.7 per cent in the April-June quarter and 8.1 per cent in the year-ago period.

The NSO has cited “sluggish growth” in manufacturing and mining, along with continued slow pace of government expenditure and weak private consumption weighed on the economic growth as the reason for the slowing down of the GDP growth.

Manufacturing, which accounts for over 17 per cent of the total Gross Value Added (GVA) output, grew by just 2.2 per cent in July-September as against 7 per cent growth in April-June and 14.3 per cent growth in the corresponding period last year. Mining and quarrying recorded a contraction of 0.1 per cent in July-September compared with 7.2 per cent growth in the previous quarter and 11.1 per cent in the year-ago period.

Agriculture recorded 3.5 per cent growth in July-September as against 2 per cent in the previous quarter and 1.7 per cent in the year-ago period. Construction sector recorded a growth of 7.7 per cent in Q2, slower than 10.5 per cent in Q1 and 13.6 per cent in the year-ago period. Services sector grew slower than expected at 7.1 per cent in Q2 as against 7.2 per cent in Q1 and 6 per cent in the corresponding period a year ago.

“Despite sluggish growth observed in ‘manufacturing’ (2.2%) and ‘mining & quarrying’ (-0.1%) sectors in Q2 of FY 2024-25, real GVA in H1 (April-September) has recorded a growth rate of 6.2%,” the Ministry of Statistics and Programme Implementation said in a statement.