India’s Q1 GDP Data Out: India’s gross domestic product (GDP) grew 6.7 per cent y-o-y during the April-June 2024 quarter (Q1 FY25) as compared with the 8.2 per cent growth recorded a year ago, according to the latest official data released on Friday, August 30. The slower Q1 FY25 GDP growth, which is the slowest in five quarters, comes amid lower government spending during parliamentary elections in the April-June 2024 quarter.
“Real GDP or GDP at constant prices in Q1 of 2024-25 is estimated at Rs 43.64 lakh crore, against Rs 40.91 lakh crore in Q1 of 2023-24, showing a growth rate of 6.7 per cent,” the finance ministry said in a statement.
In the corresponding quarter last year (Q1 FY24), India’s real GDP had grown at 8.2 per cent. In the previous quarter ended March 2024, the economic growth stood at 7.8 per cent.
According to the latest data released by the National Statistical Office (NSO), India’s gross value added or GVA, which is GDP minus net product taxes and reflects growth in supply, also grew 6.8 per cent during April-June 2024.
GDP in nominal terms, which factors in inflation, grows 9.7 per cent during Q1 2024-25, against 8.5 per cent a year ago.
Gross fixed capital formation (GFCF), which is an indicator of investment activity in the country, grew 7.5 per cent to Rs 15.20 lakh crore during the June 2024 quarter. GFCF accounts for 34.8 per cent of the GDP.
Private final consumption expenditure (PFCE) grew 7.4 per cent year-on-year to Rs 24.56 lakh crore in Q1 FY25.
Government final consumption expenditure (GFCE) fell 0.24 per cent YoY to Rs 4.14 lakh crore, amid parliamentary elections.
Net taxes, at current prices, has observed the growth rate of 8 per cent in Q1 of FY 2024-25 resulting in 0.1% point gap between the growth rates of GVA and GDP.
“Secondary Sector (8.4%) has witnessed a significant growth in Q1 of FY 2024-25, as compared to the growth rate of 5.9% in the Q1 of previous financial year,” the ministry said.
Upasna Bhardwaj, chief economist at Kotak Mahindra Bank, said, “While the 1QFY25 GDP growth has come in softer than expectations, the GVA has remained firm, with non-farm growth holding up well. We retain our GDP growth expectations of 6.9% in FY2025, aided largely by rural demand and government spending while watching closely the likely fatigue in urban demand, private capex and pace of global slowdown.”
