Notably, in the April-June quarter, India’s GDP growth slowed to 6.7 per cent owing to a decline in government spending as a Model Code of Conduct was put in place for the General elections, government data showed on August 30.
The Reserve Bank of India (RBI), during the last Monetary Policy Committee meeting in August, had projected the subcontinent’s GDP to grow at 7.1 per cent in the Q1FY25.
Following the fall in GDP in the first quarter, Nomura lowered its forecast for India to 6.7 per cent from 6.9 per cent.
Also Read: India’s GDP hits 15-month low of 6.7% in Q1FY25
Meanwhile, Goldman Sachs and J.P.Morgan maintained their FY25 growth forecast for world’s fifth-largest economy at 6.5 per cent.Last week’s data also suggested India’s primary sector comprising agriculture and mining industries witnessed a dip at 2.7 per cent on an annual basis as against 4.2 per cent in the corresponding period of FY24.Further, while the secondary sector consisting of manufacturing and electricity industries recorded a significant growth of 8.4 per cent on an annual basis, the tertiary sector slipped to 7.2 per cent annually, when compared to its growth of 10.7 per cent in FY24.
Content Source: economictimes.indiatimes.com