India's Economic Growth Hits 15-Month Low Amidst Agricultural and Service Sector Slumps

India's GDP growth slowed to 6.7% in April-June 2024-25, a 15-month low, mainly due to weak performance in the agricultural and service sectors. Despite this, India remains the fastest-growing major economy, ahead of China's 4.7% growth. The manufacturing and construction sectors, however, showed more robust performance.

India's economic growth decelerated to a 15-month low of 6.7% in the April-June quarter of the 2024-25 fiscal year, primarily due to underperformance in the agriculture and services sectors, according to government data released on Friday.

The Gross Domestic Product (GDP) had expanded by 8.2% in the April-June period of 2022-23. Despite the slowdown, India remained the fastest-growing major economy, ahead of China's 4.7% growth in the same period.

The manufacturing and construction sectors provided a sliver of optimism, showcasing more robust growth compared to last year. However, the agriculture sector's Gross Value Added (GVA) growth decelerated significantly to 2% from 3.7% in the same quarter of the previous fiscal year.