India’s economic growth was lowered to 5.4% in the July-September quarter of FY25. The reported point was the country’s weakest in nearly two years. India, however, resumed to lead the list of large economies by development, leaving China behind with a 4.6% expansion in the same period. The deceleration exposes weakness in regions such as manufacturing and mining but also means strength elsewhere.
Growth in the manufacturing sector tumbled; GVA growth is down to 2.2% from 14.3% in the same quarter a year ago. Mining and quarrying too contracted, recording only a marginal 0.01% growth, down from 11.1% a year ago. These were big contributors to India’s economic growth for the period.
However, agriculture showed a silver lining, where GVA growth accelerated at 3.5% and grew from 1.7% last year. Financial services, real estate, and professional services grew at 6.7%, showing a slight uptick. The construction sector was up by 7.7% this time, down from 13.6% last year, yet the backbone of India’s economic growth.
Utilities, such as electricity and gas, expanded at a slower 3.3%, compared to 10.5% in the year-ago period. Nominal GDP, accounting for inflation, grew by 8% year-on-year, reaching ₹76.6 lakh crore in Q2 FY25. Meanwhile, real GDP for the quarter was ₹44.1 lakh crore, showing steady progress despite global economic pressures.
India’s economic growth rises in first half of FY25
India’s economy grew 6% in the first half of FY25, with real GDP touching ₹87.74 lakh crore. The nominal GDP for the same period grew at 8.9%, reflecting the strength of domestic demand and inflationary trends.
The fiscal deficiency for the April-October span stood at ₹7.5 lakh crore, which is 46.5% of the annual target. This corresponded with 45% in the same course last year when fiscal challenges alongside growth problems were still present.
Although the monetary growth is encountering several limitations, healthy fundamentals and constant performance by some sectors keep the country ahead in the global race.
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