India’s Gross Domestic Product (GDP) grew by 6.7% in the first quarter of the fiscal year, falling short of the anticipated 6.9% and marking a decline from the previous quarter’s 7.8%. The slowdown raises concerns about the pace of economic recovery as the country continues to navigate global and domestic challenges.
Meanwhile, the Gross Value Added (GVA) growth rate has exceeded expectations. In the first quarter of FY25, it was recorded at 6.8%, compared to Bloomberg’s estimate of 6.4%. This marks an improvement over the previous quarter, where the GVA growth rate was 6.3% in Q4 FY25.
India’s federal fiscal deficit for July stood at ₹2,769.45 billion, significantly higher than the previous month’s deficit of ₹1,357.12 billion.
Farm Sector Growth Slows to 2% in June Quarter
The agricultural sector in India saw a modest growth of 2% year-over-year in the June quarter, according to government data. This represents a slowdown for the farm sector, which is crucial for the livelihood of a large portion of the population and a significant contributor to the country’s GDP.
Manufacturing Sector Sees 7% Growth in June Quarter
India’s manufacturing sector recorded a 7% growth year-over-year for the June quarter, as reported by the government. This sector, being a vital part of the country’s industrial output, showed resilience despite broader economic challenges.
Core Sector Growth Rises to 6.1% in July
India’s core sector growth picked up to 6.1% in July, a rebound from a five-month low of 5.1% in the previous month. According to data released by the government on August 30, four out of the eight core industries experienced faster growth, contributing to the overall increase.
First Four Months of FY25 Record 6.1% Growth
During the first four months of FY25, India’s core sector growth was recorded at 6.1%, slightly lower than the 6.6% growth observed in the same period of the previous fiscal year. This dip reflects challenges in certain key industries.
Eight Core Industries Growth Decelerates to 6.1% in July
The growth of India’s eight core industries slowed to 6.1% in July 2024, mainly due to declines in crude oil and natural gas production, according to data from the Ministry of Commerce and Industry released on August 30. This index is a critical measure, as these industries contribute significantly to the country’s overall industrial production.
Sectoral Performance in July 2024
In July 2024, cement production increased by 5.5%, coal production rose by 6.8%, and electricity generation grew by 7.0%. Fertilizer production also saw an uptick of 5.3%. However, the production of petroleum refinery products grew by 6.6%, while crude oil production dropped by 2.9%, and natural gas production decreased by 1.3%. These sectors collectively account for 40.27% of the Index of Industrial Production (IIP), making them vital indicators of industrial health.
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