India’s GDP grew by 5.4% in the second quarter (July-September) of FY 2024-25, as per data released by the Ministry of Statistics. While the growth has slowed compared to previous quarters, India continues to be the fastest-growing major economy. China recorded a growth of 4.6% in the same period.
The country’s economic expansion is driven by positive growth in agriculture, construction, and services, despite challenges in manufacturing and mining.
Growth in Key Sectors
The agriculture sector showed resilience, growing by 3.5% in Q2 after slower growth in recent quarters. The construction sector also performed well, registering a 7.7% growth, supported by steady domestic consumption of finished steel.
The services sector, particularly trade, hotels, and transport, posted a 6% growth, marking a significant recovery. Private Final Consumption Expenditure (PFCE) also surged, growing by 6% in Q2 and 6.7% in H1, indicating strong consumer demand.
Outlook and Future Growth
Despite a slowdown in some sectors, the Indian economy shows a positive trajectory. The government’s final consumption expenditure rebounded by 4.4%, and private consumption continues to play a pivotal role in GDP growth.
The Finance Ministry remains cautiously optimistic about the growth outlook. Improved agricultural conditions and government spending are expected to support the economy in the coming months. The Reserve Bank of India has kept its GDP growth forecast for FY 2024-25 at 7.2%.
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