India’s real gross domestic product (GDP) is projected to grow by 6.7 per cent in the first quarter of FY 2024-25. This figure is higher than the growth rate of 8.2 per cent in the first quarter of FY 2023-24. Real GDP accounts for inflation and provides a measure of the real output of the economy. According to government data, gross domestic product (GDP) fell to a five-quarter low in April-June of the current financial year, from 8.2 per cent in the year-ago period, mainly due to the poor performance of the agriculture sector.
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According to data from the National Statistical Office (NSO), the agriculture sector recorded a growth of 2 per cent, down from 3.7 per cent in the April-June quarter of 2023-24. However, the manufacturing sector growth rate rose to 7 per cent in the first quarter of the current fiscal year, as against 5 per cent in the year-ago period. Real GDP grew at 6.7% in the first quarter of FY 2024-25, as against 8.2% growth in the first quarter of FY 2023-24. Nominal GDP has witnessed a growth rate of 9.7% in the first quarter of FY 2024-25, as against 8.5% growth in the first quarter of FY 2023-24.
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Real GVA in Q1 FY 2024-25 grew by 6.8% from a growth rate of 8.3% in Q1 of the previous financial year. This GVA growth in Q1 FY 2024-25 has been driven by significant growth in the secondary sector (8.4%), which includes construction (10.5%), electricity, gas, water supply and other utility services (10.4%) (7.0%) sectors and manufacturing. The growth rate in nominal GVA for Q1 FY 2024-25 is projected at 9.8% as compared to 8.2% in Q1 FY 2023-24. Private final consumption expenditure (PFCE) at constant prices and gross fixed capital formation (GFCF) are expected to grow at 7.4% and 7.5% respectively in Q1 FY 2024-25. Net tax at current prices is projected to grow at 8.0% in Q1 FY2024-25, resulting in a gap of 0.1% points between the growth rates of GVA and GDP.
