India’s Q2 GDP Growth: Lowest in 7 Quarters

• Real GDP growth slumped to 5.4% in Q2, the lowest in seven quarters.

• This is lower than independent projections and poses challenges in achieving RBI’s full-year growth forecast of 7.2%.

• Gross Value Added (GVA) growth slowed to 5.8% from 6.8%.

• The Reserve Bank of India (RBI) estimated GDP growth of 6.8% in Q2, but the Central bank’s estimate was 7%.

• The RBI has projected a full-year GDP growth of 7.2% for 2024-25, with the Finance Ministry expecting growth in the 6.5% to 7% range.

• This is the slowest six-month growth print since the second half of 2022-23 when GDP rose 5.3%.

• Real GVA growth for the first half of 2024-25 is estimated at 6.2%, reversing a trend of GDP growth surpassing the value added in the economy.