GUWAHATI: India’s economy grew by 5.4% in the July-September quarter of FY25, marking a near two-year low due to weak manufacturing and mining performance coupled with slowing consumption.
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But despite the slowdown, India retained its position as the fastest-growing large economy, outpacing China’s GDP growth of 4.6% in the same period.
The latest figures show a decline from the 6.7% growth recorded in the April-June quarter of FY25 and 8.1% in the corresponding quarter of FY24. The last time GDP growth was lower was in Q3 FY23, when it stood at 4.3%.
This slowdown was particularly pronounced in manufacturing and mining. The Gross Value Added (GVA) in manufacturing grew by a modest 2.2%, a sharp decline from 14.3% in Q2 FY24. Mining and quarrying contracted slightly, with GVA shrinking to 0.01% compared to a robust 11.1% growth in the previous year.
Chief Economic Advisor V. Anantha Nageswaran described the 5.4% GDP growth as disappointing but noted bright spots in agriculture and construction. The agriculture sector’s GVA rose to 3.5% from 1.7% a year ago, while the construction sector grew by 7.7%, albeit slower than the 13.6% seen in Q2 FY24.
Meanwhile, other sectors also showed mixed results. Financial, real estate, and professional services expanded by 6.7%, slightly above last year’s 6.2%. Electricity, gas, and water supply grew by 3.3%, down from 10.5% in the same quarter of FY24.
