India's economic growth slowed to a 15-month low of 6.7% in April-June 2024-25, mainly due to poor performance of the agriculture and services sectors, government data showed on Friday (August 30, 2024).

The gross domestic product (GDP) expanded by 8.2% in the April-June quarter of 2022-23.

India, however, remained the fastest-growing major economy, as China posted a 4.7% growth in April-June 2024.

The previous low of 6.2% was recorded in the January-March quarter of 2023.

"India’s GDP growth expectedly slowed down in Q1 FY2025 relative to Q4 FY2024 (to a five-quarter low of 6.7% from 7.8%), even as the GVA growth surprisingly accelerated between these quarters (to 6.8% from 6.3%). This divergent trend was led by the normalisation of the growth in net indirect taxes, and the slowdown in the GDP growth is not a cause for alarm, in our view," said Icra Chief Economist, Head, research & outreach, Aditi Nayar said.

According to the National Statistical Office (NSO) data, the agriculture sector gross value added (GVA) growth decelerated to 2% from 3.7% in the April-June quarter of 2023-24.

The expansion in 'financial, real estate and professional services' GVA too slowed to 7.1% from 12.6% in the year-ago quarter.

However, the GVA in the manufacturing sector accelerated to 7% in the first quarter of the current fiscal compared to 5% a year ago.

"Real GDP or GDP at Constant Prices in Q1 of 2024-25 is estimated at ₹43.64 lakh crore against Rs 40.91 lakh crore in Q1 of 2023-24, showing a growth rate of 6.7%," NSO said in a statement.

It further stated that nominal GDP or GDP at current prices in Q1 of 2024-25 is estimated at ₹77.31 lakh crore against ₹70.50 lakh crore in Q1 of 2023-24, showing a growth rate of 9.7%

As per the data, the output (GVA) in the 'mining and quarrying' accelerated to 7.2% in the first quarter from 7% a year ago.

Electricity, gas, water supply and other utility services grew by 10.4% from 3.2%.

The construction segment also grew by 10.5% from 8.6% a year ago.

Trade, hotels, transport, communication and services related to broadcasting slowed to 5.7% from 9.7% a year ago.

Public Administration, defence and other services grew 9.5%t, up from 8.3% a year ago.

Real GVA (Gross Value Added) in Q1 of 2024-25 is estimated at ₹40.73 lakh crore against ₹38.12 lakh crore in Q1 of 2023-24, showing a growth rate of 6.8% compared to 8.3% in the year-ago period.

Nominal GVA in Q1 of 2024-25 is estimated at ₹70.25 lakh crore compared to ₹63.96 lakh crore in Q1 of 2023-24, showing a growth rate of 9.8% over 8.2% a year ago.