India's economy clocked a GDP growth rate of 5.4 per cent for the second quarter (July-September) of the current financial year, according to the data released by the Ministry of Statistics on Friday.
Although the GDP growth has slowed during the second quarter, India still remains the fastest growing major economy in the world as China recorded a 4.6 per cent growth during the July-September quarter.
Despite the fact that Manufacturing and Mining & Quarrying have experienced slow growth in Q2 of FY 2024-25 at 2.2 per cent and -0.1 per cent, respectively, real GVA in H1 (April-September) has seen a growth rate of 6.2 per cent.
The agriculture and allied sector had rebounded by registering 3.5 per cent growth during Q2 of FY 2024-25 following sub-optimal growth rates ranging from 0.4 percent to 2 percent witnessed in the four quarters prior to that.
Sustained domestic consumption of finished steel has resulted in 7.7 per cent and 9.1 per cent growth rates respectively in Q2 and H1 of FY 2024-25, as per the official statement.
The growth rate of the tertiary sector has been clocked at 7.1 per cent in Q2 of FY 2024-25 as compared to the growth rate of 6 per cent in Q2 of the previous financial year.
Particularly, Trade, Hotels, Transport, Communication & Services related to Broadcasting has observed a growth rate of 6 per cent in Q2 of FY 2024-25 over the growth rate of 4.5 per cent in Q2, 2023-24.
Another positive feature observed in the Private Final Consumption Expenditure has seen the growth rate of 6 per cent and 6.7 per cent, respectively, in Q2 and H1 of FY 2024-25 over the growth rate of 2.6 percent and 4 percent, respectively in Q2 and H1 of the earlier financial year.
Private consumption accounts for 60 per cent of the country's GDP and an acceleration in the growth rate augurs well for the future.
Government Final Consumption Expenditure has also bounced back to a growth rate of 4.4 per cent after having dipped in the previous quarter due to the Lok Sabha elections.
India's economic growth cooled to 6.7 per cent year-on-year in the April-June quarter as a drop in government spending during national elections weighed, data showed on Friday, but it remained the world's fastest-growing major economy.
The growth in gross domestic product was less than 7.8 per cent growth in the previous quarter.
However, it was quickened than 4.7 per cent growth in Asia's biggest economy, which is China, during April to June, and economists argue that India's slowdown should be temporary as the softening of inflation and improving government spending will strengthen growth within the next months.
The Gross Value Added, as seen from the economists' point of view, shows a more stable measure of growth. And in April-June quarter, it recorded 6.8 percent year on year, from 6.3 percent the previous quarter.
Consumer spending, which accounts for around 60 percent of GDP, increased to a seven-quarter high of 7.4 percent in April-June from a year earlier, compared with 4 percent in the previous quarter. Capital investments also increased by 7.4 percent compared with 6.5 percent in the previous quarter.
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