Economy’s Growth Rate Hit a 15-Month Low of 6.7% in Q1 of 2024-25

India's GDP Growth Q1 (April-June) 2024-25: Key Points

GDP Growth: Grew by 6.7% in Q1 2024-25, down from 8.2% in Q1 2023-24.

Forecast vs. Actual: Below RBI forecast of 7.1% for Q1 2024-25.

Lowest Growth: Lowest in the last 15 months; previously lowest at 6.2% in Jan-Mar 2023.

Release Date: Data released by the Ministry of Statistics and Programme Implementation on 30 August 2024.

Reasons for Decline:

• Reduced government spending due to election-related restrictions.
• Decline in agriculture sector growth due to extended heat waves.

Global Context:

Despite lower growth, India remains the fastest-growing major economy. China’s GDP grew by 4.7% in the same period.

Statistical Data:

• Real GDP: Rs 43.46 lakh crore; Growth: 6.7%.
• Nominal GDP: Rs 77.31 lakh crore; Growth: 9.7%.
• Real GVA: Rs 40.73 lakh crore; Growth: 6.8%.
• Nominal GVA: Rs 70.23 lakh crore; Growth: 9.8%.

Sector-wise Real GVA Growth Q1 2024-25:

• Primary Sector: 2.7%
• Agriculture, Livestock, Forestry, Fishing: 2.0%
• Mining and Quarrying: 7.2%
• Secondary Sector: 8.4%
• Manufacturing: 7.0%
• Electricity, Gas, Water Supply, Utilities: 10.4%
• Construction: 10.5%
• Tertiary Sector: 7.2%
• Trade, Hotels, Transport, Communication, Broadcasting: 5.7%
• Financial, Real Estate, Professional Services: 7.1%
• Public Administration, Defence, Other Services: 9.5%

Additional Information:

Gross Domestic Product (GDP): Total value of all final goods and services produced within a country in a specific period.

• Nominal GDP: Measured at current prices; does not account for inflation.
• Real GDP: Adjusted for inflation; reflects true economic growth.

Gross Value Added (GVA): Value of goods and services produced minus the cost of inputs and raw materials.

Formula: GVA = GDP + Subsidies on Products - Taxes on Products.

Indicates sectoral contribution to the economy.

Gross State Value Added (GSVA): Similar to GVA but calculated at the state level. Shows the economic performance and sector contributions of individual states.

Difference Between GDP and GVA:

• GDP: Includes taxes and excludes subsidies on products.
• GVA: Excludes taxes and includes subsidies on products, focusing on value addition by sectors.

Sectoral Value Added: Measures value added by specific sectors (agriculture, industry, services) to the economy.