Statsguru: India's GDP growth may miss govt estimate; IIP data fuels doubt

The government's final consumption expenditure provided a temporary lift to the economy in Q2FY24 but it has since faded sharply, even registering a decline in Q1FY25

The recent Index of Industrial Production (IIP) data has intensified doubts about the official gross domestic product (GDP) growth projections for Q4 and full FY25. The IIP growth rate slowed to 3.6 per cent in Q4 of FY25 — the second-lowest in eight quarters. IIP measures volume of industrial production, while GDP is value addition. For instance, if Maruti Suzuki dispatches one Alto and Ciaz each to a dealer, it would reflect as addition of two units in the manufacturing segment of IIP, and then be adjusted for their weightings. However, the dispatch of a Ciaz would likely increase manufacturing