Economy: India's GDP came down to the lowest level in two years

India's economic growth slowed to an almost two-year low of 5.4% in the July-September quarter of the current financial year as the manufacturing and mining sectors showed poor performance, but it remains the fastest-growing large economy. This data was revealed by official data from the Ministry of Statistics and Program Implementation on Friday. Gross domestic product (GDP) had increased by 8.1% in the July-September quarter of financial year 2023-24.

The previous low was 4.3% for GDP growth in the third quarter, October-December 2022, of FY 2022-23. The Economic Survey tabled in Parliament early this year estimated India's real GDP growth for 2024-25 at 6.5-7%, conceding that market expectations are high. Actual GDP growth is the reported economic growth adjusted for inflation.

S&P Global Ratings on Monday maintained India's GDP forecast at 6.8% for the current financial year 2024-25, cutting the economic growth forecast for the next two years. The Reserve Bank of India (RBI) said last week that the Indian economy was facing weakness, particularly in the recent quarter. In its latest monthly bulletin, the Reserve Bank of India said the sluggishness that had marked the Indian economy in the second quarter of 2024-25 (July to September) is behind us now, with private consumption again becoming the driver of domestic demand and festive spending in October-December boosting real activity.