GDP data: The GDP growth figures for the second quarter of the financial year 2024-25 have arrived. According to data released by the government, India’s economic growth slowed to 5.4% in the second quarter. Let us tell you that in the second quarter of the last financial year 2023-24, India’s GDP was 8.1 percent. Not only this, the country’s GDP in the first quarter of the current financial year was 6.7 per cent. We told them that the economic giants had already predicted the slowdown in the country’s economic growth. It attributed the slowdown in GDP growth to weak consumption, low government spending and the impact of adverse weather on key industries. A survey of economists in the country had estimated GDP growth at 6.5%, while a Reuters poll had made a similar estimate, lower than the Reserve Bank of India’s (RBI) estimate of 7%.
Tremendous drop in the growth rate of the manufacturing sector
Real gross value added (GVA), a key measure of economic activity, grew at a rate of 5.6% in the second quarter of FY25, much lower than the 7.7% in the second quarter of last year. In the second quarter of FY2025, the manufacturing sector recorded a very slow growth of 2.2 per cent, while in the second quarter of last year, the manufacturing sector had grown at a rate of 14.3 per cent. Mining sector growth also slowed to -0.1% compared to 11.1 percent in the second quarter of last year.
Better results of sectors related to agriculture and services
Apart from this, agriculture and allied sectors have made a comeback by registering a growth rate of 3.5% in the second quarter of fiscal year 2024-25, compared to a growth of 0.4% to 2.0% during the previous four quarters. In the construction sector, sustained domestic consumption of steel resulted in a growth of 7.7% in the second quarter of FY24-25. The services-related sector has witnessed a growth rate of 7.1% during the second quarter of fiscal year 2024-25, while it was 6.0% in the second quarter of the last financial year.
Latest business news
