India's GDP Growth Slows to 6.7% in Q1, Lowest in 15 Months

New Delhi: India's GDP grew by 6.7% from April to June this financial year, the lowest in the last 15 months. 

The government's  expenditure decreased 0.24% year-on-year basis, the Mint reported. The decline has been attributed to a host of factors including election-related disruptions and extreme summer conditions, which impacted economic activities across several sectors. 

Although private consumption showed an upward trend. It grew by 7.44% YoY, thus reflecting a solid consumer demand, the report added. 

The Hindu quoted chief economic advisor V. Anantha Nageswaran describing the decline as  “a slight slowdown that was anticipated by most commentators” as the conduct of the general elections had brought down government expenditure, including capital spends.

“So in that sense, the 6.7% [growth] was well within the consensus anticipation," the CEA said. 

The Economic Times reported the country's  primary sector comprising agriculture and mining industries witnessed a dip at 2.7% on an annual basis as against 4.2% in the corresponding period of FY24.

The agriculture sector slowed to 2.0% in the first quarter of FY25 on an annual basis. The sector had grown at 3.7% in FY24, the newspaper said. 

The  secondary sector consisting of manufacturing and electricity industries registered a growth of  of 8.4% on an annual basis. It was better than the same period of the last fiscal when this sector had recorded a growth of 5.9%

Similarly, the manufacturing sector also recorded a good performance. It grew at 7.0% for the first quarter of the current fiscal year on an annual basis. The manufacturing industry had recorded a growth of 5.0% in FY24, The Economic Times reported.

Note: An earlier version of this article referred to 'months' as 'quarters'. The error has been rectified.

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