two year low

The country’s GDP fell to 5.4 per cent in the July-September quarter of the current financial year, a two-year low, due to poor performance in the manufacturing and mining sectors and weak demand.
It is noteworthy that the GDP in the July-September quarter of 2023-24 was 8.1 percent. Whereas in the April-June quarter of 2024-25, GDP was 6.7 percent.

Earlier, the GDP in the October-December quarter of 2022-23 was 4.3 percent. However, with China’s GDP growing by 4.6 per cent in the July-September quarter of 2024-25, India is becoming the fastest growing economy among the world’s major economies.

According to National Statistical Office (NSO) data, the agriculture sector grew at the rate of 3.5 percent in the July-September quarter of the financial year 2024-25, while it was 1.7 percent in the same period last year.

The growth rate of the manufacturing sector in the second quarter of the current financial year has been 2.2 percent. Whereas in the same period last year, an increase of 14.3 percent was seen.

After the second quarter GDP figures are out, the GDP for the first six months of 2024-25 is estimated to be 6 percent. In the same period last year, GDP was 8.2 percent.

Meanwhile, according to the data released by the government, the Centre’s financial deficit in the first seven months of the current financial year has reached 46.5 percent of the total target for the entire year.

Central fiscal deficit is the difference between government expenditure and government revenue. The difference between expenditure and revenue in the period April to October is Rs 7,50,824 crore.

The growth of eight core sectors has declined to 3.1 percent in October 2024. In October last year, the growth of these eight core sectors was 12.7 percent.

On the other hand, the government is considering changing the base year for GDP calculations from 2011-12 to 2022-23 to show an accurate picture of the economy. The Ministry of Statistics and Program Implementation said in a statement that this change will come into effect from 2026.

The GDP calculations were last revised in 2011-12 and this will be the first revision in more than a decade.