GDP growth for India has come down to 5.4% in the July-September quarter of FY 2025. This is the slowest growth in seven quarters. GDP growth has slowed due to the poor performance of the manufacturing sector. The National Statistical Office released this data today on 29 November.
Earlier, the growth was 4.3% in the third quarter of 2023. At the same time, it was 8.1% in the same quarter a year ago (Q2FY24). In the previous quarter i.e., Q1FY25, it was 6.7%. India’s GVA grew at the rate of 5.6% in the July-September quarter. GVA growth was 7.7% in the same quarter a year ago. At the same time, GVA growth was 6.8% in the previous quarter.
Sector-wise growth on year-on-year basis (FY25 Vs FY24)
- Mining Growth: -0.1% Vs 11.1%
- Manufacturing Growth: 2.2% Vs 14.3%
- Electricity Growth: 3.3% Vs 10.5%
- Construction Growth: 7.7% Vs 13.6%
- Agriculture Growth: 3.5% Vs 1.7%
- Trade, Hotel Growth: 6% Vs 4.5%
- Finance & Real Estate Growth: 6.7% Vs 6.2%
- Public Admin & Services Growth: 9.2% Vs 7.7%
India is still the fastest-growing economy among major countries
Despite slow growth, India remains the fastest-growing economy among major economies. China’s GDP growth was 4.6% in the July-September quarter this year. Japan’s GDP grew at a rate of 0.9%.
GDP measures the value of goods and services
Gross Domestic Product measures the total value of goods and services produced in a country within a period. It also includes foreign companies which produce goods within the country’s borders. Gross Domestic Product tells about the health of the economy.
There are two types of GDP, real and nominal
In real GDP, the value of goods and services is calculated on the base year’s value or constant price. Currently, the base year for calculating GDP is 2011-12. Whereas, nominal GDP is calculated on current prices.
