This figure falls slightly below the Reserve Bank of India's (RBI) projection of 7.1 per cent for the quarter. The government will release the Q1 FY25 GDP growth statistics on August 30.
The industrial sector was the primary driver of this slowdown, led by the manufacturing segment, exacerbated by election-related uncertainties, code of conduct impositions leading to lagged government spending, the report noted, adding that June traditionally has been a weak quarter.
The downturn marks the third consecutive quarter of declining industrial growth, with the sector's GVA growth dropping from 8.4 per cent in Q4 FY24 to 5.8 per cent in Q1 FY25.
The manufacturing segment has been notably affected, with GVA growth plummeting from 8.9 per cent in Q4 FY24 to 4.5 per cent year on year (YoY) in Q1 FY25.
The agriculture sector likely gave a surprise on the upside, with its growth spiking sequentially to 2.2 per cent in Q1 FY25 from 0.6 per cent in Q4 FY24. This is likely the highest number in the last four quarters, though still lagging behind the growth rate of 3.7 per cent seen in Q1 FY24.
Fibre2Fashion News Desk (DS)