India’s GDP Growth Slows to 15-Month Low of 6.7% in June Quarter

India’s economic growth hit a five-quarter low of 6.7% in the April-June period, marking a slowdown compared to previous quarters. The drop in growth was driven by weaker performance in agriculture and trade-related services. Additionally, the general elections during this period affected government spending.

The 6.7% growth rate aligns with an ET poll estimate of 6.85%, but it’s a decline from 7.8% in the last quarter of FY24 and 8.3% in the same quarter last year. The Reserve Bank of India (RBI) had predicted a 7.1% growth for this quarter, but actual numbers fell short.

Key Takeaways:

• Slower Growth: India’s GDP growth dropped to 6.7% in Q1 FY25.
• Factors: Weaker agriculture output and election-related spending cuts contributed to the slowdown.
• Comparisons: Growth fell from 7.8% in the last quarter and 8.3% a year earlier.