GDP Growth Falls

The manufacturing sector’s output growth, as per the gross value added (GVA), in the third quarter dipped to 3.5 per cent from 14 per cent in the year-ago period

New Delhi: India’s economic growth rate decelerated to 6.2 per cent in the October-December quarter this fiscal, mainly due to poor performance by mining, manufacturing and all other sectors, with the exception of agriculture.

However, on a sequential basis, the economic growth rate in the third quarter showed improvement over 5.6 per cent recorded in the second quarter. The GDP (gross domestic product) growth was 9.5 per cent in the October-December 2023 quarter, according to the data released by the National Statistical Office (NSO) on Friday. It also released the second advance estimate for the current fiscal and pegged the economic growth at 6.5 per cent against 6.4 per cent estimated in the first advance estimate released in January.

The manufacturing sector’s output growth, as per the gross value added (GVA), in the third quarter dipped to 3.5 per cent from 14 per cent in the year-ago period. Mining and quarrying production growth slowed to 1.4 per cent in the third quarter from 4.7 per cent a year ago. The construction sector growth too slipped to 7 per cent from 10 per cent a year ago.

However, the output of the farm sector increased by an impressive 5.6 per cent during the quarter compared to a growth of 1.5 per cent in the year-ago period. The national accounts data showed that the electricity, gas, water supply, and other utility services segment grew 5.1 per cent in the third quarter against 10.1 per cent a year earlier.

The GVA growth in the services sector - trade, hotel, transport, communication and services related to broadcasting - was 6.7 per cent during the third quarter against 8 per cent. Financial, real estate and professional services grew by 7.2 per cent in the third quarter over 8.4 per cent earlier. Public administration, defence and other services posted 8.8 per cent growth, marginally up from 8.4 per cent in the third quarter of the last fiscal.

“Real GDP or GDP at Constant Prices is estimated to attain a level of Rs 187.95 lakh crore in the financial year 2024-25, against the First Revised Estimate of GDP for the year 2023-24 of Rs 176.51 lakh crore. The growth rate in Real GDP during 2024-25 is estimated at 6.5 per cent as compared to 9.2 per cent in 2023-24,” the NSO statement said.

According to the statement, nominal GDP or GDP at Current Prices is estimated to attain a level of Rs 331.03 lakh crore in 2024-25 against Rs 301.23 lakh crore in 2023-24, showing a growth rate of 9.9 per cent.