GDP growth still resilient: India maintains momentum despite Q1 slowdown

The high difference noticed in the GVA and GDP growth during the 3 rd and 4 th quarter of FY24 has eased in Q1FY25

Against the Reserve Bank of India’s (RBI’s) projection of 7.1 per cent, India’s first quarter (Q1) 2024-25 (FY25) gross domestic product (GDP) growth came in at 6.7 per cent. This is in line with market expectations and significantly lower than the 7.8 per cent recorded in the fourth quarter (Q4) 2023-24 (FY24) and 8.2 per cent in Q1FY24.

The quarter witnessed decreased government consumption and investment spending due to the parliamentary election. Yet, India continues to be one of the fastest-growing large economies in the world, demonstrating continued growth momentum driven by investment and consumption despite geopolitical