India's GDP Growth Falls Short of Expectations, Sparking Industry Concerns

India's GDP grew by 5.4% in the July-September quarter of FY2024-25, falling short of the RBI's 7% forecast. This has prompted economists to revise projections. Sectors like manufacturing suffered, though agriculture performed well. Despite challenges such as inflation and global uncertainties, the RBI remains optimistic about medium-term growth.

India's economy expanded by just 5.4% in the July-September period of the 2024-25 fiscal year, falling significantly short of the Reserve Bank of India's (RBI) forecast of 7%, leading to concerns among economists.

Upasna Bhardwaj, chief economist at Kotak Mahindra Bank, attributed the decline to disappointing corporate earnings, particularly in manufacturing. She suggested that high-frequency data indicates potential recovery in the second half, though full-year growth is now expected to be around 6.2%.

Sujan Hajra, Chief Economist & Executive Director at Anand Rathi Shares and Stock Brokers, highlighted discrepancies affecting the GDP figures. Despite this, sectors like agriculture showed robust growth. Nevertheless, risks from Chinese imports and global policy uncertainties could hinder the private sector revival.

(With inputs from agencies.)