India records 5.4% GDP growth in Q2 FY25

29 Nov '24

2 min read

India's economy records 5.4% growth in Q2 FY25

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India's GDP grew by 5.4 per cent in Q2 FY25, down from 8.1 per cent last year, reaching ₹44.10 lakh crore (~$52,146.15 million).
The agriculture sector rebounded with 3.5 per cent growth, while manufacturing slowed to 2.2 per cent, contributing to the overall deceleration.
Despite challenges, strong consumption and services sector resilience offer hope for sustained growth.

India’s economy grew by 5.4 per cent in the second quarter (July-September) of the fiscal 2024-25 (FY25), according to the latest estimates released by the National Statistics Office (NSO). This marks a slowdown compared to the 8.1 per cent growth recorded in the corresponding quarter last year. The gross domestic product (GDP) at constant prices during the quarter was estimated at ₹44.10 lakh crore (~$52,146.15 million), up from ₹41.86 lakh crore in the same period of the previous year.

The agriculture and allied sectors showed a strong comeback, growing by 3.5 per cent after subdued performances over the last four quarters. Private consumption witnessed a significant uptick, with final consumption expenditure growing by 6.0 per cent in the quarter, compared to a modest 2.6 per cent growth last year. Government spending also rebounded, growing by 4.4 per cent after experiencing low or negative growth in recent quarters, the Ministry of Statistics and Programme Implementation said in a press release.

However, the secondary sector, which includes manufacturing, showed weaker performance. Manufacturing growth slowed to 2.2 per cent, contributing to the overall slowdown in economic growth.

For the first half of FY25, India’s real GDP grew by 6.0 per cent, while nominal GDP grew by 8.9 per cent. Despite the challenges, the services sector’s resilience and strong consumption growth provided optimism for the country’s economic trajectory.

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