main Economic Advisor (CEA) V Ananth Nageswaran described GDP growth of 5.4 percent in the second quarter as disappointing. However, he said that despite this, the economic growth forecast of 6.5 percent for the current financial year is 'not in danger'. It was estimated in the Economic Review that the country's gross domestic product (GDP) will grow at the rate of 6.5-7.0 percent in the financial year 2024-25. This is less than the rate of 8.2 percent in the last financial year.
Economic growth at lowest level in 2 years
According to official data, economic growth slowed to a near two-year low of 5.4 per cent in the July-September quarter due to poor performance by the manufacturing and mining sectors as well as weak consumption. GDP had grown by 8.1 percent in the same period a year ago. “Real GDP growth at 5.4 per cent represents a low level, which is disappointing. But there are some bright spots as well,” Nageswaran told reporters on the quarterly data.
some positive signs too
He said that the performance of agriculture and allied sectors and construction sector has been very good in this quarter. Record production estimates for kharif food grains and promising prospects for rabi crops bode well for farm incomes and rural demand. Along with this, the Chief Economic Advisor said, “Based on the second quarter data, it cannot be said that the 6.5 percent number is in danger, because the low figures of the second quarter are not a trend.” He expressed confidence that the economy is showing strength, supported by stable demand and strong manufacturing and services sector activity.
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