Data released by the National Statistical Office (NSO) on Friday showed gross domestic product (GDP) grew by 6.7% in the April-June quarter of the current fiscal year, slower than 8.2% in the previous year-ago quarter and lower than 7.8% recorded in the previous three-month period.The 6.7% number was lower than RBI’s estimate of 7.1% for the first quarter.
Mfg, construction growth robust, farm’s weak in Q1
India still remains the fastest-growing major economy in the world in the first quarter as China’s economy has slowed, dragged down by its property sector woes. Boosted by strong domestic demand and govt spending on capital expenditure, the Indian economy has grown at a robust clip against the backdrop of a slowing global economy and geopolitical challenges.
The finance ministry said growth momentum remained strong in the first quarter, asserting that in the medium term, the Indian economy can grow at 7%-plus on a sustained basis building on the structural reforms undertaken over the last decade.
During the first quarter, the farm sector remained weak in the first quarter, growing by 2%, lower than the 3.7% expansion in the previous year earlier quarter. The finance ministry said healthy progress of monsoon rainfall and higher kharif sowing bode well for rural demand and agriculture output.
The construction sector rose a healthy 10.5% during April-June, the first quarter of the 2024-25 fiscal, higher than the 8.6% recorded in the first quarter of 2023-24 while manufacturing remained robust, growing by 7% during the period compared with a 5% expansion in the three-month period in the year-earlier period.
