India’s GDP growth rate slips to 6.7 per cent in Q1 FY25, lowest in five quarters

India's Gross Domestic Product (GDP) growth slowed to 6.7 per centin the first quarter of the 2024-25 financial year, marking the lowest increase in five quarters, a decline from the 7.8 per centgrowth recorded in the previous quarter.

The latest GDP figures also fall short of the 8.2 per centgrowth seen in the same period last year, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday (August 30).

In a statement, the Indian finance ministry said, “Real GDP or GDP at constant prices in Q1 of 2024-25 is estimated at Rs 43.64 lakh crore, against Rs 40.91 lakh crore in Q1 of 2023-24, showing a growth rate of 6.7 per cent.”

While the 6.7 per centgrowth is broadly in line with what experts had estimated, it falls short of the Reserve Bank of India's (RBI) projection of 7.2 per centfor the same period.

The GDP in nominal terms, which includes the effects of inflation, saw a 9.7 per centincrease in the first quarter of the 2024-25 financial year. This is an improvement compared to the 8.5 per centgrowth observed during the same period last year.

Investment activity, as measured by Gross Fixed Capital Formation (GFCF), rose by 7.5 per centin the June 2024 quarter, reaching ₹15.20 lakh crore ($18,313.25 million).

On the other hand, Government Final Consumption Expenditure (GFCE) saw a slight decline of 0.24 per centyear-on-year, totalling ₹4.14 lakh crore ($4,987.95 million).

(With inputs from agencies)