India's GDP Growth: Bright Spots Amid Disappointment

The Chief Economic Advisor, V Anantha Nageswaran, comments on India's Q2 GDP growth of 5.4%, labeling it as disappointing but not endangering the FY25 projection of 6.5%. Highlighted sectors include agriculture and construction, with a resilient labor market and promising farming prospects supporting economic stability amid global risks.

Chief Economic Advisor V Anantha Nageswaran expressed disappointment over India's 5.4% GDP growth in the second quarter, yet affirmed that the overall growth target of 6.5% for FY25 remains secure.

The Economic Survey forecasted a GDP increase between 6.5 to 7% for 2024-25, down from a previous peak of 8.2%. Nageswaran emphasized that the current low growth rate does not signal a persistent trend.

He pointed out bright spots in the economy, specifically the agriculture, construction, and labor markets, driven by steady demand and strong manufacturing and service sectors. However, Nageswaran cautioned against geopolitical risks and potential policy shifts affecting exports and inflation.

(With inputs from agencies.)