India’s economic growth slowed to near two-year low of 5.4 per cent in the July-September quarter of this fiscal due to poor performance of manufacturing and mining sectors, but the country continued to remain the fastest-growing large economy, data showed on Friday.
The gross domestic product (GDP) had expanded by 8.1 per cent in the July-September quarter of 2023-24 fiscal.
The previous low level of GDP growth at 4.3 per cent was recorded in the third quarter (October-December 2022) of financial year 2022-23.
However, India remained the fastest-growing major economy as China’s GDP growth in the July-September quarter this year was at 4.6 per cent.
According to the National Statistical Office (NSO) data, the growth of agriculture sector GVA (Gross Value Added) accelerated to 3.5 per cent in the latest July-September quarter from 1.7 per cent a year ago.
The GVA in the manufacturing sector slowed to 2.2 per cent in the second quarter of the current fiscal compared to an expansion of 14.3 per cent in the year-ago period.
As per the data, the output (GVA) in the ‘mining and quarrying’ contracted to 0.01 per cent in the second quarter against a growth of 11.1 per cent a year ago.
The expansion in financial, real estate and professional services’ GVA was 6.7 per cent, up from 6.2 per cent in the year-ago quarter.
Electricity, gas, water supply and other utility services grew by 3.3 per cent, slower than 10.5 per cent a year ago.
The construction sector recorded a growth of 7.7 per cent in the second quarter, down from 13.6 per cent year on year.
The growth in gross domestic product (GDP) during the April-June quarter of 2024-25 remained unchanged at 6.7 per cent.
“Real GDP or GDP at constant prices in Q2 of 2024-25 is estimated at Rs 44.10 lakh crore, against Rs 41.86 lakh crore in Q2 of 2023-24, showing a growth rate of 5.4 per cent,” the NSO said in a statement.
Nominal GDP or GDP at current prices in Q2 of 2024-25 is estimated at Rs 76.60 lakh crore, against Rs 70.90 lakh crore in Q2 of 2023-24, showing a growth rate of 8.0 per cent, it added.
On half-yearly basis, the statement said the real GDP or GDP at constant prices in April-September of 2024-25 (H1 FY25) is estimated at Rs 87.74 lakh crore, against Rs 82.77 lakh crore in the first half of 2023-24, showing a growth rate of 6 per cent.
Nominal GDP or GDP at current prices in H1, 2024-25 is estimated at Rs 153.91 lakh crore, against Rs 141.40 lakh crore in H1 of 2023-24, showing a growth rate of 8.9 per cent, it stated.
Meanwhile, the government data showed that the Centre’s fiscal deficit at the end of the first seven months of the current financial year touched 46.5 per cent of the full-year target.
In absolute terms, the fiscal deficit — the gap between government’s expenditure and revenue — was at Rs 7,50,824 crore during April-October period, according to data released by the Controller General of Accounts (CGA).
The deficit stood at 45 per cent of the Budget Estimates (BE) in the corresponding period of 2023-24.
