A few negatives and some positives as India's GDP growth slumps to seven-quarter low: Data in five charts

India's GDP declined to seven quarter low

India’s GDP growth slumped more than expected to a seven-quarter low of 5.4 percent for the second quarter of FY25 compared with 6.7 percent in the first quarter.

While mining contracted for the first time in eight quarters, manufacturing and utilities sector exhibited anaemic growth in the second quarter.

Data released on November 29 shows that all was not well on the capex and consumption front either. Despite a low base of 2.6 percent in Q2FY24, consumption remained low at 6 percent compared with 7.4 percent in the previous quarter.

On the other hand, investment growth declined to a six-quarter low of 5.4 percent, down from 7.5 percent the previous month.

The slump in export growth to 2.8 percent from 8.7 percent in the previous quarter did not help either.

Silver linings

However, there are some silver linings in the GDP print. Agriculture seems to be back on a revival path, as growth jumped to a five-quarter high of 3.5 percent compared with 2 percent in the first quarter. July-September marks the third consecutive month of growth for the ailing sector.

There was a rise in government consumption to 4.4 percent from a 0.2 percent contraction witnessed in the previous month.