India's Q2 Growth Report: GDP Slips to 5.4%, lowest in 18 Months; Check the Key Highlights Here!

The National Statistics Office has released the Q2 GDP data, showing a drop in growth to 5.4%. This is much lower than the Reserve Bank of India's yearly growth estimate of 7.2%.

The economy of India appears to have slowed down during the July–September quarter, thus the GDP growth rate recorded at its lowest in 18 months.

Key Highlights of the Q2 GDP Growth Report

Check the key highlights of the Q2 GDP growth report released by the NSO:

Overall GDP Growth Slows

India's GDP growth fell to 5.4% in Q2FY25, marking an 18-month low. The figure, released by the National Statistics Office, is below the Reuters poll estimate of 6.5% and shows a decline from 6.7% in Q1FY25 and 8.1% in Q2FY24.

The Gross Value Added (GVA) grew by 5.6%, falling short of the predicted 6.5%. This marks a slowdown from the 7.7% growth recorded in Q2FY24 and 6.8% in the previous quarter.

Sector-wise Performance:

Sector-wise performance growth report presented a mixed picture, with some sectors improving the numbers while others showed a reduced pace. 

Check the sector-wise performance report below:

Agriculture: The agriculture sector demonstrated consistent growth, expanding by 3.5%. This was a noticeable improvement compared to 2% growth in the previous quarter (Q1FY25) and 1.7% growth in the same quarter a year ago.

Mining: The mining sector faced a downturn, contracting by -0.1% in Q2FY25. This is a significant reversal from the 11.1% growth recorded in the same quarter last year and the 7.2% growth in the preceding quarter. 

Manufacturing: Manufacturing, which plays a critical role in industrial output, slowed dramatically to 2.2% growth. This marked a sharp decline from the robust 14.3% growth seen in Q2FY24 and 7% growth in Q1FY25.

Electricity: The electricity, gas, and other utility services sector grew by only 3.3%, down sharply from 10.5% growth in the same period last year and 10.4% in the previous quarter.

Construction: The construction sector grew by 7.7%, reflecting a decline from 13.6% growth a year ago and 10.5% in the previous quarter. 

Trade, Hotels, and Transport: This segment of the services sector improved slightly, recording 6% growth compared to 4.5% a year earlier and 5.7% in the last quarter. 

Services Sector Growth Slows in Q2

The service sector report showed growth in comparison to the last year’s GDP Growth report. However, the numbers are a bit low than the Q1 Growth Report of FY25. 

Financial, Real Estate, and Professional Services: This category grew by 6.7%, thus showcasing a slight improvement from 6.2% growth a year ago. However, these numbers are still low than the 7.1% recorded in the previous quarter.

Public Administration and Other Services: Public administration, defense, and other services, which include government spending, posted 9.2% growth. This was higher than the 7.7% growth seen last year but marginally lower than the 9.5% in Q1FY25. 

India’s Q2 GDP report shows a broad slowdown across sectors, with some areas like agriculture showing improvement, while others, such as mining and manufacturing, faced significant declines. Despite the challenges, the economy remains resilient in certain key areas like construction and public services.

ALSO READ: Trump's New Tariffs on Canada, Mexico, and China: Is India Next?

ALSO READ: Bal Vivah Mukt Bharat: Will the Modi Government Change Marriage Laws?