India’s Q2FY25 GDP Growth: Get the latest updates on India’s economic performance in the July-September 2024 quarter. Track trends, expert analysis and implications for FY25.
India Q2 GDP Data: India’s gross domestic product (GDP) grew by 5.4 percent during July-September 2024, according to the latest official data released on Friday. Despite its slowest growth in seven quarters, India is still the world’s fastest-growing major economy.
Q2 FY25 growth of 5.4 per cent fell short of analysts’ expectations, who had projected growth in the range of 6.2 per cent to 6.9 per cent.
Real GDP is projected to grow by 5.4% in the second quarter of fiscal 2024-25, compared to a growth rate of 8.1% in the second quarter of fiscal 2023-24, the finance ministry said in a statement.
Manufacturing mainly impacted the overall figures by growing 2.2 percent in Q2FY25, which was 5 percent expected. It was 7 percent in the last quarter.
Services related to trade, hotels, transport, communication and broadcasting grew by only 6 per cent against expectations of 7-8 per cent.
The country’s GDP grew by 6.7 percent in the previous quarter of April-June 2024 (Q1 FY25). Its growth was 8.1 percent in the year-ago period (Q2 FY24).
According to the latest data released by the National Statistical Office (NSO), India’s gross value added or GVA, which is GDP minus net product tax and reflects growth in supply, also grew by 5.6 percent during July-September 2024.
Gross Fixed Capital Formation (GFCF), an indicator of investment activity in the country, declined by 5.4 percent during the September 2024 quarter to Rs. 15.13 lakh crore was done. GFCF accounts for about 35 percent of GDP.
Private Final Consumption Expenditure (PFCE) rose 6 percent YoY in Q1 FY25 to Rs. 24.82 lakh crores.
Government Final Consumption Expenditure (GFCE) declined by 4.4 percent year-on-year to Rs. 4 lakh crore has happened.
Meanwhile, during the July-September 2024 quarter, US GDP grew by 2.8 percent. The UK grew by just 0.1 percent. China expanded 4.6 percent during the latest quarter (Q3) and is struggling to reach 5 percent for full FY25. Japan’s growth during the quarter was 0.9 percent.