India’s gross domestic product (GDP) growth rate experienced a deceleration to 6.7% in the April-June quarter of the 2024 fiscal year, marking the lowest growth in five quarters. This slowdown comes after the previous quarter’s 7.8% growth rate and highlights a significant dip from the 8.2% recorded during the same period last year. The primary factor contributing to this decline is the underperformance of the agriculture sector, according to the latest data from the National Statistical Office (NSO).
Despite the slowdown, India remains the fastest-growing major economy globally, outpacing China’s GDP growth of 4.7% in the same quarter. However, the drop in GDP growth raises concerns about the sustainability of the economic recovery, especially as the agriculture sector—crucial to India’s economy—recorded a mere 2% growth, down sharply from 3.7% in the corresponding period of the previous year.
On a positive note, the manufacturing sector showed resilience, with growth accelerating to 7% in the April-June quarter, up from 5% in the year-ago period. This sector’s performance suggests that industrial activity continues to provide a buffer against the agricultural slowdown.
The previous low for GDP growth was recorded at 6.2% in the January-March 2023 quarter, highlighting the fluctuating nature of India’s economic recovery. As the government and policymakers focus on addressing these challenges, all eyes are on future data releases to gauge the trajectory of India’s economic growth.
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