Economic Affairs Secretary Anticipates Stronger GDP Growth In Second Half

Economic Affairs Secretary Ajay Seth on Monday said second quarter GDP growth at 5.4% is lower than the potential but exuded confidence that the second half to be better. Several high-frequency indicators in the month of October are pointing towards that, he tolds reporter.

Seth also said that quarterly estimates have been revised upwards in the past when full GDP numbers are available.

"Numbers are lower than what our potential is but not alarming...GDP growth will be much higher in the third and fourth quarter," he said.

The Economic Survey projected India's GDP to grow at 6.5-7% in 2024-25, down from a high of 8.2% in the the preceding financial year.

India's economic growth slowed to near two-year low of 5.4% in the July-September quarter of this fiscal due to poor performance of manufacturing and mining sectors as well as weak consumption.

The gross domestic product had expanded by 8.1% in the July-September quarter of 2023-24 fiscal and 6.7% in first quarter of current fiscal (April-June 2024).

The previous low level of GDP growth at 4.3% was recorded in the third quarter (October-December 2022) of financial year 2022-23.

According to the National Statistical Office data released on Friday, the growth of agriculture sector GVA (Gross Value Added) accelerated to 3.5 per cent in the latest July-September quarter from 1.7% a year ago.

The GVA in the manufacturing sector slowed to 2.2% in the second quarter of the current fiscal compared to an expansion of 14.3% in the year-ago period.