The country’s GDP was 6.7 percent in the first quarter of the current financial year.
GDP Data: GDP growth figures for the second quarter of the financial year 2024-25 have arrived. According to data released by the government, India’s economic growth declined to 5.4% in the second quarter. Let us tell you that in the second quarter of the last financial year 2023-24, India’s GDP was 8.1 percent. Not only this, the country’s GDP in the first quarter of the current financial year was 6.7 percent. Let us tell you that economic leaders had already predicted the slowdown in the country’s economic growth. He attributed the slowdown in GDP growth to weak consumption, low government spending and the impact of adverse weather on key industries. A survey of the country’s economists had estimated GDP growth at 6.5%, while a Reuters poll had made a similar estimate, lower than the Reserve Bank of India’s (RBI) estimate of 7%.
Tremendous decline in the growth rate of manufacturing sector
Real gross value added (GVA), a key measure of economic activity, grew at a pace of 5.6% in Q2FY25, much lower than 7.7% in Q2 last year. In the second quarter of FY 2025, the manufacturing sector recorded a very slow growth of 2.2%, whereas in the second quarter of last year, the manufacturing sector had grown at a pace of 14.3 percent. The growth of the mining sector also declined to -0.1% as compared to 11.1 percent in the second quarter of last year.
Better results from agriculture and services related sectors
Apart from this, agriculture and allied sectors have made a comeback by registering a growth rate of 3.5% in the second quarter of FY 2024-25, compared to 0.4% to 2.0% growth during the previous four quarters. In the construction sector, sustained domestic consumption of steel resulted in growth of 7.7% in Q2FY24-25. The services related sector has seen a growth rate of 7.1% during the second quarter of the financial year 2024-25, whereas it was 6.0% in the second quarter of the last financial year.
How were the fiscal deficit figures?
The Centre’s fiscal deficit reached 46.5 per cent of the full-year target in the first seven months of financial year 2024-25. According to data from the Controller General of Accounts (CGA), the fiscal deficit during the April-October 2024 period stood at Rs 7,50,824 crore. The difference between the expenditure and revenue of the government is called fiscal deficit. The fiscal deficit in the same period of FY 2023-24 was 45 percent of the budget estimate.
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