India's economy grew by 6.7% in real terms during the April-June quarter of the current financial year 2024-25, according to data released by the Ministry of Statistics and Programme Implementation on Friday.
This marks a slowdown compared to the same period last year when the economy expanded by 8.2%.
In nominal terms, GDP growth for the first quarter stood at 9.7%, up from 8.5% in the corresponding quarter of the previous year.
The Reserve Bank of India (RBI), in its recent monetary policy review, projected GDP growth for 2024-25 at 7.2%, with the first quarter expected to grow by 7.1%. The central bank also forecast growth of 7.2% for Q2, 7.3% for Q3, and 7.2% for Q4.
India had registered an impressive GDP growth of 8.2% in the financial year 2023-24, maintaining its position as the fastest-growing major economy. In the previous financial years, the economy grew by 7.2% in 2022-23 and 8.7% in 2021-22.
The Economic Survey tabled in Parliament last month conservatively estimated India's real GDP growth for FY 2024-25 at 6.5% to 7%, while acknowledging that market expectations are higher.
The World Bank also revised its growth forecast for India, increasing it by 20 basis points to 6.6% from its earlier prediction of 6.4%. It noted that while India's growth is expected to moderate, it will continue to be the fastest-growing among the world's major economies.
Quarterly Estimates of GDP are indicator-based and compiled using the benchmark-indicator method i.e. the estimates available for the same quarter of the previous financial year (2023-24) are extrapolated using the relevant indicators reflecting the performance of sectors. Data sourced from various Ministries/Departments/Private Agencies serve as valuable inputs in the compilation of these estimates.
