GDP Data Today: India's Q2 GDP Dips To 5.4% - Check Latest Numbers

India’s GDP growth in the second quarter of FY25 stood at 5.4 per cent, a sharp decline from 6.7 per cent witnessed in the first quarter of FY25, the data released by the National Statistics Office on Friday said. At 5.4 per cent, the GDP growth in Q2 is the slowest in the last 7 quarters.  In the same period last year, India witnessed 8.1 per cent growth rate. 

Below Expectation

“The sharply lower than expected GDP figures reflect the highly disappointing corporate earnings data. The manufacturing sector appears to have taken the maximum beating. The high-frequency data suggests that festive linked revival in activity may provide a marginally better 2H growth figure but overall GDP growth for FY25 is going to be around 100 bps lower than RBI ’s estimate of 7.2 per cent. 
Despite the sharp slowdown in GDP growth, we maintain our view of a pause by the RBI next week given elevated inflation and uncertain global environment,” Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank said.
 

Major Triggers For Decline

The major triggers for the decline in the growth are a decline in consumption, industrial activity, and a dip in corporate margins, even though the government capital expenditure had grown in Q2, the overall decline is offsetting the growth in capex and showing underlying weak private sector momentum in the Indian economy. The Indian economy witnessed stellar growth of 8.1 per cent in the second quarter of FY24.

The gross value added ( GVA) the key metric of economic activity in the economy also declined from 6.8 per cent in the previous quarter to 5.6 per cent in the Q2 of FY25. 

The Reserve Bank of India has pegged India’s growth in FY25 at 7.2 per cent for FY25, speaking about the second quarter of FY25, the central bank sees India’s growth at 7 per cent. In the October bulletin, the apex bank seemed bullish on India’s growth story riding on the back of private consumption and improved rural demand.