New Delhi: India reported a decline in Q1 GDP growth in FY25 to 6.7 per cent compared to 8.2 per cent in the year ago period, according to official data. India’s industrial growth stood at 8.3 per cent in Q2FY25, up from 6 per cent a year ago, while services sector growth came in at 7.2 per cent, down from 10.7 per cent a year ago. Financial sector and real estate sector growth was down to 7,1 per cent from 12.6 per cent a year ago. Public administration and services growth stood at 9.5 per cent compared to 8.2 per cent a year ago.
PRESS NOTE ON ESTIMATES OF GROSS DOMESTIC PRODUCT FOR THE FIRST QUARTER (APRIL – JUNE) OF 2024-25.
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India’s GDP grew at its slowest pace in the past 15 months, lower than the 7.1 per cent GDP growth forecast by the Reserve Bank of India. The previous lowest print was reported in Q4FY3 at 6.2 per cent, which was an improvement from 4.3 per cent growth in Q3FY23 and 4.5 per cent in Q4FY22.
Sectorwise performance
While mining and quarrying activity inched up to 7.2 per cent from 7 per cent a year ago, while agriculture, livestock, forestry and fishing grew at 2 per cent, down from 3.7 per cent a year ago. Power, gas, water supply and other utility services jumped to 10.4 per cent from 3.2 per cent in the year ago period.
While the primary sector growth moderated to 2.7 per cent in Q1FY25, the secondary sector growth rebounded to 8.4 per cent in Q1Fy25 from 5.9 per cent a year ago. The tertiary sector growth also slowed down to 72 per cent from 10.7 per cent in the year-ago period.
The private final consumption expenditure stood at RS 24.56 lakh crore in Q1FY25, compared to Rs 22.86 lakh crore in the year-ago period. Government final consumption expenditure slipped to Rs 4.14 lakh crore from RS 4.15 lakh crore in the year-ago period.
India Q1 GDP growth forecast
While the Reserve Bank of India forecasted India’s GDP to grow at 7.1 per cent in Q1Fy25, SBI Research mirrored the central bank’s prediction with a downward bias. A Reuters poll of 52 economists indicated 6.9 per cent Q1 GDP growth, while rating agency ICRA shared a conservative Q! GDP growth estimate of 6 per cent in Q1FY25, citing a decline in urban consumer demand.
India’s GDP grew at 6.7 per cent in the first quarter of FY25, compared to 8.2 per cent growth reported in the year ago period, amid a slowdown in services sector activity. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
