New Delhi: Malik K Economic development It fell to a seven-quarter low in the July-September quarter of the current fiscal year, dragged down by a slowdown in manufacturing and a contraction in mining. gave Services sector remained stable and the farm segment showed a healthy recovery.
Data released by the Office for National Statistics showed GDP grew by 5.4 per cent in the three months to September, down from 6.7 per cent in the April-June period and the second quarter of 2023-24. This is lower than the 8.1 percent recorded. This was lower than the RBI’s estimate of 7% for the three-month period ending September. The central bank has maintained its 7.2% growth forecast for 2024-25. The government expects the economy to grow in the range of 6.5%-7%. TNN
Experts say the pace of growth is faster than expected.
The slowdown in the second quarter was sharper than expected and pointed to weakness in consumption and investment. The slowdown, which is predicted, is linked to a number of factors, including weather-related events such as excess rains that hit the power, coal and cement sectors, a decline in corporate earnings and stubborn inflation on aggregate demand. The effect Chief Economic Adviser V Anantha Nageswaran said, “Really GDP growth The 5.4% print is on the downside and is disappointing but there are some bright spots.”
The manufacturing sector slowed sharply to 2.2 percent in the second quarter, compared with an expansion of 14.3 percent in the prior three-month period. The mining sector shrank by 0.1 percent compared to growth of 11.1 percent in the second quarter of last year. The industrial sector fell to a six-quarter low of 3.6 percent. The core services sector remained stable and maintained its momentum, expanding 7.1 percent in the three months to September, compared with 7.2 percent in the previous quarter. Farm and allied sectors, which had been sluggish in previous quarters, rebounded to 3.5 percent growth, compared to 2 percent in the previous quarter and 1.7 percent in the second quarter of last year.
“While GDP growth was expected to moderate as reflected by some high-frequency macroeconomic indicators and weak corporate performance, the magnitude of the decline has been sharper than expected. The main reason for the low growth is the poor performance of the industrial sector. is, particularly the mining, manufacturing and power sectors,” said Rajni Sinha, chief economist at ratings agency CareEdge.
“Investment has moderated sharply. Government investment, which had so far supported growth, moderated, with central and stable state investment falling to 15% and 11%, respectively, in the first half of the year. “However, the positive side is that consumption growth has been healthy at around 6% in Q2,” Sinha said.