India's GDP growth drops to 5.4% in Q2 FY25

03 Dec '24

1 min read

India's GDP growth drops to 5.4% in Q2 FY25

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India's GDP growth dropped to 5.4 per cent in Q2 FY25—the slowest pace of expansion in seven quarters, as sluggish urban demands dragged manufacturing activities despite an improvement in the farm sector, official data show.
This is the third consecutive quarter of slowdown in economic growth.
Manufacturing sector growth fell to a six-quarter low of 2.2 per cent in Q2 FY25 from 7 per cent in Q1.

India’s gross domestic product (GDP) growth dropped to 5.4 per cent in the second quarter (Q2) of fiscal 2024-25 (FY25)—the slowest pace of expansion in seven quarters, as sluggish urban demands dragged manufacturing activities despite an improvement seen in the farm sector, data from the National Statistics Office (NSO) show.

This is the third consecutive quarter of slowdown in economic growth, which has slowed sharply after witnessing an 8.6-per cent expansion in Q3 FY24. It fell to 7.8 per cent in Q4 FY24 and to 6.7 per cent in Q1 FY25.

The Q2 FY25 GDP numbers are sharply lower than almost all estimates, including that of the Reserve Bank of India (RBI).

The country’s manufacturing sector growth fell to a six-quarter low of 2.2 per cent in Q2 FY25 from 7 per cent in Q1.

The growth of GDP at current prices (nominal GDP) slowed to 8 per cent and gross value added (GVA) grew by 5.6 per cent during Q2 FY25.

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