- India‘s GDP growth declines to 6.7% in Q1 FY25, a five-quarter low.
- Real GVA rises by 6.8%, with nominal GDP growth at 9.7%.
- India remains the fastest-growing major economy despite challenges.
India’s GDP growth for the first quarter of FY25 (April-June 2024) has decreased to 6.7%, marking its lowest point in five quarters.
This decline, compared to the 8.2% growth seen in the same period last year, is primarily attributed to weaker performance in the agricultural sector.
India’s Q1 FY25 Economic Performance: Slowing Growth Amid Resilient Non-Farm Sectors
Real Gross Value Added (GVA) grew by 6.8% during this period, indicating resilience in the non-farm sectors. Meanwhile, private consumption and investment showed robust growth, with PFCE and GFCF increasing by 7.4% and 7.5%, respectively. The government’s focus on maintaining controlled inflation and industrial growth amidst global supply chain disruptions has been crucial in supporting the overall economic landscape.
Despite the lower GDP growth, Real GVA rose by 6.8%, suggesting that non-farm sectors such as manufacturing, services, and construction are holding strong. Private consumption, a key driver of the economy, showed resilience with a 7.4% growth rate, while investments, as indicated by Gross Fixed Capital Formation, grew by 7.5%.
The Indian economy continues to outperform its global counterparts, maintaining its status as the fastest-growing major economy. China’s GDP growth, for instance, was recorded at 4.7% during the same period. India’s ability to maintain this position, despite the GDP slowdown, is a testament to its robust economic policies and diversified growth drivers.
Government efforts to keep inflation in check and sustain industrial growth, despite global supply chain disruptions, have been instrumental in preserving economic stability. The Combined Index of Eight Core Industries also showed a healthy increase of 6.1%, reflecting continued industrial activity and resilience in the face of challenges.
India’s economy, while facing a slowdown in GDP growth, remains resilient with strong performance in non-farm sectors and robust private consumption. As the fastest-growing major economy, India is poised to navigate the challenges of FY25 with continued strength.
“India’s economy, though slowing, remains a global standout, proving its resilience amid global economic uncertainties.”
