Nov 29, 2024 05:11 PM IST
India’s GDP growth slows to 5.4% in the second quarter of the financial year 2024-25, compared to 8.1% in the second quarter of 2023-24.
India’s Gross Domestic Product (GDP) growth slowed down to 5.4% during the second quarter of the financial year 2024-25 due to the falling growth rate in manufacturing, consumption, and mining.
In comparison, the GDP growth rate was 8.1% in the second quarter of 2023-24, according to government data released by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) on Friday, November 29, 2024.
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What caused India’s GDP to fall in Q2 2024-25?
Manufacturing, and mining tanked the most among all the sectors.
The growth rate of manufacturing fell to just 2.2% from 14.3% in the second quarter of last year.
The mining and quarrying sector was the only one which registered a negative growth rate this time of -0.1%. It grew 11.1% last year.
To top off all the woes, the growth rate of electricity, gas, water supply, and other utility services also fell drastically, reflecting a huge fall in consumption growth. It fell from 10.4% last year to just 3.3% this year.
Even construction fell significantly from 13.6% growth last time to just 7.7% this time.
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Just like the GDP, the Real Gross Value Added (GVA) also slowed down to 5.6% in the second quarter of 2024-25, as compared to 7.7% in 2023-24.
Nominal GVA also dropped to 8.1% this time compared to 9.3% during the same quarter of the previous year.
The agriculture, livestock, forestry, and fishing sector did however, show positive signs. It saw its growth rate more than double, reaching 3.5% this quarter, as compared to just 1.7% last year.
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