NEW DELHI: The State Bank of India (SBI) recently reported that India’s GDP growth moderation for the first quarter (Q1) of the financial year 2024-25 (FY25) surpasses the average decadal growth of 6.4 per cent for Q1.
“Though the growth for Q1 has reduced to 6.7 per cent YoY but it is still higher than the average decadal growth of 6.4 per cent in Q1,” the report stated.
GDP growth rate for the first quarter of FY25 stood at 6.7%, as per the official data released by the ministry of statistics and programme implementation’s official data on Friday. The GDP growth rate was more than 7% in the last four quarters.
Additionally, SBI reports that India’s GDP growth projection for the fiscal year 2025 (FY25) may need to be adjusted downwards to 7% after the actual growth rate came in lower than the Reserve Bank of India’s (RBI) earlier projection of 7.1 per cent for the same period.
The report attributed the subdued Q1 growth to weaker performances in both the agriculture and services sectors. Agriculture grew by 2.0 per cent, indicating challenges such as unfavorable weather conditions or reduced demand.
The services sector, while performing better, recorded a growth of 7.2 per cent, which falls short of the strong expansion observed in previous quarters.
The report also mentioned that nominal GDP, which accounts for inflation, increased by 9.7 per cent in Q1 FY25, up from he 8.5 per cent growth recorded in Q1 FY24.
Furthermore, the report mentioned that government expenditure during Q1 grew by 4.1 per cent, which, although slower than in previous periods, can be attributed to the general elections that took place during this quarter.
