On 30th August 2024, the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), released the Estimates of Gross Domestic Product (GDP) For the First Quarter (April- June) of 2024-25, along with its expenditure components both at Constant (2011-12) and Current Prices.
- According to the NSO data, India’s Real GDP slowed to a 15-month low of 6.7% in Q1of FY25 as compared to the growth rate of 8.2% in Q1 of FY24 (2023-24), mainly due to poor performance of the agriculture and services sector.
- As per NSO data, agriculture and its allied sector, a key component of the Indian economy saw a modest growth of 2.0%, down from 3.7% (in Q1FY24).
- Despite slow growth in Q1of FY25, India still remains to be the fastest-growing major economy in the world, as China’s GDP registered the growth of 4.7% in April-June 2024.
Details of Quarterly Estimates and Growth Rates:
i.Real GDP or GDP at Constant Prices in Q1 of 2024-25 is estimated at Rs 43.64 lakh crore inQ1of FY25 against Rs 40.91 lakh crore in Q1 of FY24.
ii.The report noted that Nominal GDP saw the growth rate of 9.7% in Q1 of FY25 against the growth rate of 8.5% in Q1 of FY24.
- While, Nominal GDP or GDP at Current Prices in Q1 of 2024-25 is estimated at Rs 77.31 lakh crore against Rs 70.50 lakh crore in Q1 of FY24.
iii.Real Gross Value Added (GVA) registered a growth of 6.8% (in Q1of FY25) over the growth rate of 8.3% (in Q1of FY24). It is estimated at Rs 40.73 lakh crore in Q1of FY25, against Rs 38.12 lakh crore in Q1 of FY24.
- This growth of Real GVA is mainly driven by growth in secondary sector (8.4%) led by construction (10.5%), electricity, gas, water supply & other utility services (10.4%) and manufacturing (7.0%) sectors.
iv.Nominal GVA showed a growth of 9.8% in Q1of FY25 (up from 8.2% in Q1FY24). It is estimated to achieve Rs 70.25 lakh crore (in Q1of FY25) compared to Rs 63.96 lakh (in Q1 of FY24).
v.The significant growth in the GVA in Q1 FY25 was mainly led by construction, public administration, defence and other services.
- NSO data revealed that increase in the construction GVA growth, from 8.5% (in Q4 FY24) to 11.6% (in Q1 FY25) is unexpected as the volume growth in construction-related sectors such as: cement and steel output or construction goods from the Index of Industrial Production (IIP) had slowed between these quarters.
- Also, the capital expenditure of the centre government as well as state governments had also declined sharply in Q1FY25.
vi.As per NSO data, Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) at constant prices registered growth rates of 7.4% and 7.5% respectively in Q1FY25.
vii.The gap between the growth rates of GVA and GDP is 0.1% as Net Taxes, at current prices registered the growth rate of 8.0% in Q1FY25
Growth for Primary, Secondary and Tertiary Sectors in Q1FY25:
i.Primary sector which includes: mining & quarrying increased from 7.2% to 7% a year ago.
ii.Secondary sector: the cumulative growth of sectors like: electricity, gas, water supply and other utility services increased from 3.2% (in Q1FY24) to 10.4% (in Q1FY25).
- While, the construction segment also increased by 10.5% from 8.6% during the same period of previous year.
iii.Tertiary sector: According to NSO data, GVA of sectors like: financial, real estates and professional services registered a growth of 7.1%, down from 12.6% (in Q1FY24).
- The NSO data showed that public administration, defence and other services witnessed the growth of 9.5% (in Q1FY25) FY25 against the growth rate of 8.3% (in Q1 of FY24).
- The combined growth rate of hotel, trade, transport, and services related to broadcasting has decreased to 5.7% (in Q1FY25) from 9.7% (in Q1FY24).
About Ministry of Statistics and Programme Implementaion (MoSPI):
Minister of State (MoS)–Rao Inderjit Singh (Constituency- Gurugram, Haryana)
