India‘s Gross Domestic Product (GDP) dropped to a 15-month low of 6.7 per cent year-on-year for the April-June quarter of the current financial year, according to government data released on Friday.
The primary sector, which includes agriculture and mining, experienced a decline, growing at 2.7 per cent annually compared to 4.2 per cent during the same period last year. Specifically, the agriculture sector saw a slowdown, with growth decelerating to 2.0 per cent from 3.7 per cent in the previous fiscal year.
In contrast, the secondary sector, encompassing manufacturing and electricity, demonstrated robust performance with an 8.4 per cent annual growth. This marks an increase from the 5.9 per cent growth recorded in the same quarter of the previous fiscal year. Within this sector, manufacturing saw significant acceleration, growing at 7.0 per cent compared to 5.0 per cent in FY24.
The tertiary sector, which includes services such as trade, hotels, transport, communications, and broadcasting, also experienced a downturn. It grew by 7.2 per cent annually, down from 10.7 per cent in FY24. Notably, the growth rate for trade, hotels, transport, communications, and broadcasting slowed to 5.7 per cent from 9.7 per cent in the previous year.
Similarly, financial, real estate, and professional services saw a decrease in growth, falling to 7.1 per cent from 12.6 per cent in FY23. On a positive note, public administration and defense recorded a growth of 9.5 per cent for Q1FY25, up from 8.3 per cent in FY24.
Earlier, the Reserve Bank of India (RBI) had projected a GDP growth rate of 7.1 per cent for Q1FY25 during its August Monetary Policy Committee meeting.
