India’s GDP growth slows to 5.4% in July-September, lowest in two years
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India’s economic growth decelerated to 5.4% in the July-September quarter of the 2024-25 fiscal year, marking its slowest pace in nearly two years.
The slowdown was primarily attributed to weak performance in the manufacturing and mining sectors, according to data released by the National Statistical Office (NSO) on Friday.
Despite the dip, India maintained its position as the fastest-growing major economy, with China recording a GDP growth of 4.6% during the same period.
Sectoral performance showed mixed results in the latest quarter. The Gross Value Added (GVA) in agriculture improved to 3.5% from 1.7% in the same period last year, while manufacturing growth slowed sharply to 2.2%, down from a robust 14.3% in the previous fiscal.
Mining and quarrying experienced a near standstill, with GVA contracting marginally to 0.01% compared to 11.1% growth a year ago. Financial, real estate, and professional services showed modest improvement, growing by 6.7% compared to 6.2% previously. Utilities, including electricity, gas, and water supply, grew by 3.3%, a significant decline from 10.5% last year. Meanwhile, the construction sector expanded by 7.7%, down from a strong 13.6% growth in the previous year.
India’s real GDP at constant prices for the July-September quarter stood at Rs 44.10 lakh crore, reflecting a growth rate of 5.4%, compared to Rs 41.86 lakh crore in the same quarter of 2023-24. Meanwhile, nominal GDP at current prices was estimated at Rs 76.60 lakh crore, up 8.0% from Rs 70.90 lakh crore last year.
For the first half of the fiscal year (April-September), real GDP grew by 6.0%, reaching Rs 87.74 lakh crore, while nominal GDP increased by 8.9% to Rs 153.91 lakh crore.
Government data revealed that the Centre’s fiscal deficit for the first seven months of the financial year reached 46.5% of the full-year target. In absolute terms, the deficit stood at Rs 7,50,824 crore between April and October 2024, slightly higher than the 45% recorded during the same period last year.
The current GDP growth rate is the lowest since the October-December quarter of 2022-23, which saw growth of 4.3%. However, India’s economic trajectory continues to outpace that of other major economies, underlining its resilience despite sectoral challenges.
