New Delhi, Nov 29: India’s GDP growth for the July-September quarter of 2024 slowed to just 5.4%, marking its lowest rate since the third quarter of FY23, according to data released by the National Statistics Office on Friday. This growth figure was significantly below the Reserve Bank of India’s (RBI) earlier forecast of 7%.
The real GDP for Q2 of 2024-25 stood at Rs 44.10 lakh crore, up from Rs 41.86 lakh crore in the same quarter of the previous year, reflecting a moderate 5.4% growth. In comparison, India’s economy had expanded by 8.1% during the July-September period of 2023.
Gross Value Added (GVA), a key indicator of economic activity across various sectors, grew by 5.6%, also falling short of the 6.5% forecast. This represents a sharp slowdown from the 7.7% growth recorded in the same quarter last year and 6.8% growth in Q1 of FY25.
Sector-wise, the performance was mixed. Agriculture saw a growth of 3.5%, a recovery from the 2% growth in the previous quarter and 1.7% in the same period last year. However, the mining sector contracted by 0.1%, a significant decline compared to the 11.1% expansion in Q2 of FY24 and 7.2% growth in the first quarter of FY25.
The RBI has projected India’s full-year GDP growth for 2024-25 at 7.2%, while the International Monetary Fund (IMF) and the World Bank have estimated it at 7%. Several global rating agencies and multilateral organizations have also revised their growth forecasts for India upward in recent months.
In its October monetary policy review, the RBI revised its growth outlook for the remainder of the year, projecting Q3 and Q4 GDP growth at 7.4% each. The central bank also forecasts real GDP growth of 7.3% for Q1 of the next fiscal year, 2025-26.
