India's Economic Growth Hits 15-Month Low Despite Fastest in Major Economies

India's economic growth slowed to a 15-month low of 6.7% in April-June 2024-25, mainly due to poor performance in agriculture and services sectors. However, the nation remained the fastest-growing major economy, with China posting 4.7% growth. Despite the slowdown, the manufacturing sector saw a growth of 7%.

India's economic growth has decelerated to a 15-month low of 6.7% during April-June 2024-25, primarily attributed to weak performances in the agriculture and services sectors, according to government data revealed on Friday.

The Gross Domestic Product (GDP) had grown by 8.2% in the same quarter last financial year. Despite this deceleration, India maintained its position as the fastest-growing major economy, outpacing China, which recorded a 4.7% growth during the same period.

Nevertheless, the manufacturing sector showed resilience with a growth of 7%. Aditi Nayar, Chief Economist at Icra, remarked that the slowdown in GDP is not alarming. The agriculture sector's Gross Value Added (GVA) growth fell to 2%, while financial services GVA decelerated to 7.1%. The construction segment saw unexpected growth, contrary to the slowing capex of the Centre and states.