India GDP growth slows to 15-month low at 6.7% in April-June
ECONOMY & POLICY

India GDP growth slows to 15-month low at 6.7% in April-June

India's economy grew by 6.7% in the April-June quarter of FY25, marking the slowest growth in five quarters, according to data from the Statistics Ministry. This follows a 7.8% expansion in the previous quarter.

The slowdown was sharper than expected. A poll of 25 economists had forecasted a growth rate of 6.85% for the April-June quarter. The deceleration is attributed to a lack of economic momentum during the general elections, subdued government capital expenditure, and an uneven monsoon.

In Q1 FY25, India's real GDP (at constant prices) is estimated at Rs 43.64 trillion, up from Rs 40.91 trillion in the same period last year. Nominal GDP (at current prices) is estimated at Rs 77.31 trillion, compared to Rs 70.50 trillion in the previous year.

The agriculture sector saw growth slow to 2% in the April-June quarter, down from 3.7% in the same period of the previous year. However, the manufacturing sector showed improvement, with growth accelerating to 7%, compared to 5% in the previous year.

Economists had anticipated the slowdown due to factors such as a high base effect, adverse weather, and restrictions on government activities during the election period. The Reserve Bank of India's (RBI) decision to keep the repo rate unchanged at 6.5% since February 2023 also played a role in the slower growth.

"A slowdown in GDP was expected. Immediate revival of private capital expenditure is required," said Debopam Chaudhuri, Chief Economist, Piramal Enterprises Ltd. He warned that delays in rate cuts by the RBI could further delay economic recovery.

Despite the overall slowdown, some analysts see positive signs in the data, including increased private consumption and modest improvements in investment activity.

"The lower growth rate can be attributed to a high base effect, adverse weather conditions, and election-related restrictions. However, we anticipate full-year GDP growth for FY25 to align closely with our estimate of 7%. This strong growth, alongside falling inflation, is expected to support continued outperformance in the Indian equity market," said Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Shares and Stock Brokers. He also noted that the strong growth figures might prompt the RBI to maintain current monetary policy rates throughout 2024.

(Mint)

India's economy grew by 6.7% in the April-June quarter of FY25, marking the slowest growth in five quarters, according to data from the Statistics Ministry. This follows a 7.8% expansion in the previous quarter. The slowdown was sharper than expected. A poll of 25 economists had forecasted a growth rate of 6.85% for the April-June quarter. The deceleration is attributed to a lack of economic momentum during the general elections, subdued government capital expenditure, and an uneven monsoon. In Q1 FY25, India's real GDP (at constant prices) is estimated at Rs 43.64 trillion, up from Rs 40.91 trillion in the same period last year. Nominal GDP (at current prices) is estimated at Rs 77.31 trillion, compared to Rs 70.50 trillion in the previous year. The agriculture sector saw growth slow to 2% in the April-June quarter, down from 3.7% in the same period of the previous year. However, the manufacturing sector showed improvement, with growth accelerating to 7%, compared to 5% in the previous year. Economists had anticipated the slowdown due to factors such as a high base effect, adverse weather, and restrictions on government activities during the election period. The Reserve Bank of India's (RBI) decision to keep the repo rate unchanged at 6.5% since February 2023 also played a role in the slower growth. A slowdown in GDP was expected. Immediate revival of private capital expenditure is required, said Debopam Chaudhuri, Chief Economist, Piramal Enterprises Ltd. He warned that delays in rate cuts by the RBI could further delay economic recovery. Despite the overall slowdown, some analysts see positive signs in the data, including increased private consumption and modest improvements in investment activity. The lower growth rate can be attributed to a high base effect, adverse weather conditions, and election-related restrictions. However, we anticipate full-year GDP growth for FY25 to align closely with our estimate of 7%. This strong growth, alongside falling inflation, is expected to support continued outperformance in the Indian equity market, said Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Shares and Stock Brokers. He also noted that the strong growth figures might prompt the RBI to maintain current monetary policy rates throughout 2024. (Mint)

Next Story
Technology

Atlas Copco Unveils Innovation Centre in Pune for Smart Manufacturing

Atlas Copco Tools has inaugurated its first Smart Factory Innovation Centre in India, a cutting-edge facility in Pune designed to showcase advanced technologies powering Smart Integrated Assembly ecosystems. The centre will serve as a hub for businesses across automotive, aerospace, electronics, heavy machinery, and manufacturing sectors to explore automation and smart manufacturing solutions for zero-defect production.The Innovation Centre offers hands-on demonstrations of the latest torquing and dispensing technologies, highlighting software-driven solutions that optimize efficiency, enhance..

Next Story
Resources

Elite Elevators Unveils India’s First Fully Customizable Home Elevator

Elite Elevators, a leader in the premium home lift segment, has launched Elite Elevators Bespoke—India’s first fully customizable luxury home elevator. The launch event, held at the company’s Chennai headquarters, showcased how the new offering redefines residential mobility by integrating state-of-the-art technology with personalized design.Speaking on the launch, Vimal Babu, Founder and CEO, Elite Elevators, said, “At Elite Elevators, our mission has always been to revolutionize home mobility with world-class innovations. Through its enhanced customizable features, our Bespoke elevat..

Next Story
Real Estate

Under-Construction Homes Now Costlier Than Ready-to-Move Properties

Under-construction (UC) homes are now more expensive than ready-to-move (RTM) properties across major Indian metros, according to the latest insights from Magicbricks.In Delhi, UC homes are priced at Rs 25,921 per sq. ft., surpassing RTM properties at Rs 18,698 per sq. ft. Similarly, in Gurugram, UC homes cost Rs 17,185 per sq. ft., compared to Rs 14,617 per sq. ft. for RTM properties.Mumbai, India’s costliest real estate market, has also seen a sharp rise, with UC home prices soaring 33.4 per cent Y-o-Y in Q1 2025 to Rs 32,371 per sq. ft., while RTM properties stand at Rs 28,935 per sq. ft...

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?