Economy’s growth rate hits a 15-month low of 6.7 % in Q1 of 2024-25
Economy
4 min read
The Indian gross domestic product (GDP) grew by 6.7 per cent in the first quarter (April-June) of the financial year 2024-25, compared to 8.2 per cent in the first quarter of 2023-24.
It was below the Reserve Bank of India's forecast of 7.1 per cent for the first quarter of the current fiscal year. This is the lowest quarterly growth registered by the Indian economy in the last fifteen months.
In recent times, the lowest GDP growth was registered during January -March 2023, when the Indian GDP grew by 6.2 per cent.
The Union Ministry of Statistics and Programme Implementation released the latest estimate on the Indian economy on 30 August 2024.
Reason for the decline in the GDP growth
According to economists, the main reason for the decline in the GDP growth rate is the decline in government spending due to election-related restrictions on the government.
The other reason has been the decline in the agriculture sector growth rate due to extended heat wave conditions in certain regions.
India is still the fastest-growing major economy in the country
Despite a low growth rate of 6.7 per cent in the first quarter of 2024-25, the Indian economy is still the fastest-growing economy in the world.
China, the world’s second-largest economy, grew by 4.7 per cent in the April-June quarter.
Key Statistical Data of Q1(April-June )202425
- The real GDP, or GDP at the constant price, was Rs 43.46 lakh crore, and the growth rate was 6.7 per cent.
- The nominal GDP, or GDP at market price, was Rs 77.31 lakh crore, and the growth rate was 9.7 per cent.
- Based on Gross Value Addition (GVA), the Real GVP of the economy was Rs 40.73 lakh crore, and the growth rate was 6.8 per cent.
- Based on Gross Value Addition (GVA), the nominal GVP of the economy was Rs 70.23 lakh crore, and the growth rate was 9.8 per cent.
Quarterly Growth rate in Q1 of 2024-25 based on Real GVA
Following is the Real GVA growth rate of the various sectors of the Indian economy during the Q1 (April-June )2024-25.
|
Sectors of Economy |
Growth Rate during Q1( April-June)2024-25 |
|---|---|
|
Primary |
2.7 per cent |
|
1. Agriculture, Livestock, Forestry and fishing, |
2.0 per cent |
|
2. Mining and quarrying. |
7.2 percent |
|
Secondary |
8.4 per cent |
|
1. Manufacturing |
7 per cent |
|
2. Electricity, Gas, Water supply and other Utility Services, |
10.4 per cent |
|
3. Construction |
10.5 per cent |
|
Tertiary |
7.2 per cent |
|
1. Trade, Hotels, Transport, Communication and Services related to Broadcasting, |
5.7 per cent |
|
2. Financial, Real Estate & Professional Services |
7.1 per cent |
|
3. Public Administration, Defence & Other Services. |
9.5 per cent |
