India’s Q2 GDP growth story, in 5 charts
ICRA. While manufacturing and construction emerged as the best performers, the services and agriculture sectors saw a setback, with their growth printing lower than in the previous quarter.
Services growth slowed to 5.8% from 10.3%, while agriculture growth nearly halved to 1.2% from 3.5%. Even with slower services sector growth, financial services, real estate, and professional services were the biggest contributors to the overall gross value added (GVA) during the quarter.
Despite high growth, construction did not feature in the list of top contributors to GVA. On the expenditure side, both government final consumption expenditure (GFCE) and gross fixed capital formation (GFCF), a proxy for investments, recorded double-digit growth, pushing GDP higher.
On the other hand, private final consumption expenditure, a proxy for consumption, faltered, with the growth in this segment falling to 3.1% from 6.0% in Q1. In terms of current prices, GDP growth was 9.1%, only 150 basis points higher than real GDP growth.
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