Poll dampener: India's GDP growth slows to 15-month low of 6.7% in June quarter
The quarterly figure was in line with an ET poll median estimate of 6.85%, slipping from 7.8% in the last quarter of FY24 and 8.3% in the year before. The Reserve Bank of India (RBI) had forecast 7.1% growth for the quarter. However, gross value added, which strips out indirect tax and subsidies, is estimated to have grown 6.8% compared with 6.3% in the preceding quarter.
«India was the fastest-growing major economy in the June quarter. Data shows better alignment between demand and supply sides of the economy in the quarter,» said chief economic adviser V Anantha Nageswaran.
Total government expenditure in the first quarter was ₹4.14 lakh crore, down from ₹4.15 lakh crore in the year-earlier period.
Strong Export Growth
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Industrial production growth in the first quarter of FY25 was 5.2%, higher than 4.7% registered a year ago. «Slowdown in the first quarter was anticipated due to elections… In the medium term, the economy can grow at 6.5-7% annually,» the CEA said, emphasising that momentum remains strong.
Crisil chief economist DK Joshi said, «The slowdown in GDP growth in the first quarter was a foregone conclusion due to signs of weak urban consumption, tepid corporate results and slowdown in government spending.»
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Exports recorded a strong expansion of 8.7% despite slow growth in global trade. «Manufacturing has done better than expected
