In the second quarter of the fiscal year 2024–2025, India’s GDP growth fell to 5.4% as a result of declining growth rates in mining, manufacturing, and consumption.
According to government data issued on Friday, November 29, 2024 by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), the GDP growth rate in the second quarter of 2023–2024 was 8.1%.
Why did India’s GDP decline in the second quarter of 2024–2025?
The two industries that suffered the most were manufacturing and mining. From 14.3% in the second quarter of previous year, manufacturing’s Gross Value Added (GVA) dropped to just 2.2%. This time, the mining and quarrying industry was the only one to record a negative GVA rate of -0.1%. A year ago, it grew 11.1%.
To make matters worse, the rate of growth for gas, electricity, water supply, and other utility services also experienced a sharp decline, which was reflected in a significant decline in the growth of consumption. It dropped to just 3.3% this year from 10.4% the previous year. This time, even construction grew by just 7.7%, a considerable decrease from the previous 13.6% gain.
Similar to the GDP, the Real GVA decreased from 7.7% in 2023–2024 to 5.6% in the second quarter of 2024–2025. In addition, nominal GVA decreased to 8.1% this quarter from 9.3% in the same quarter last year.
Nonetheless, there were encouraging developments in the fields of forestry, fisheries, cattle, and agriculture. Compared to just 1.7% last year, its growth rate more than doubled this quarter, hitting 3.5%.
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