New Delhi2 days ago
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India’s GDP growth has declined to 5.4% in the July-September quarter of FY 2025. This is the slowest growth in seven quarters. GDP growth has slowed down due to poor performance of the manufacturing sector. The National Statistics Office released this data today on 29 November.
Earlier, the growth in the third quarter of 2023 was 4.3%. Whereas in the same quarter a year ago (Q2FY24) it was 8.1%. In the previous quarter i.e., Q1FY25 it was 6.7%. India’s GVA grew at 5.6% in the July-September quarter. GVA growth in the same quarter a year ago was 7.7%. Whereas in the last quarter GVA growth was 6.8%.
Sector wise growth on year on year basis (FY25 Vs FY24)
- Mining Growth: -0.1% Vs 11.1%
- Manufacturing Growth: 2.2% Vs 14.3%
- Electricity Growth: 3.3% Vs 10.5%
- Construction Growth: 7.7% Vs 13.6%
- Agriculture Growth: 3.5% Vs 1.7%
- Trod, Hotel Growth: 6% Vs 4.5%
- Fin and Real Estate Growth: 6.7% Vs 6.2%
- Public Admin and Services Growth: 9.2% Vs 7.7%
India is still the fastest growing economy among major countries
Despite slow GDP growth, India still remains the fastest growing economy among major economies. China’s GDP growth in the July-September quarter this year was 4.6%. Whereas Japan’s GDP has grown at the rate of 0.9%.
GDP measures the value of goods and services
GDP i.e. Gross Domestic Product measures the total value of goods and services produced in the country within a period. In this, the foreign companies which produce within the country’s borders are also included. GDP tells the health of the economy.
There are two types of GDP, real and nominal.
There are two types of GDP. In real GDP, the value of goods and services is calculated at the base year’s value or stable price. At present the base year for calculating GDP is 2011-12. Whereas, nominal GDP is calculated at current price.
What is Gross Value Added (GVA)?
In simple words, GVA reveals the total output and income in an economy. It tells how many rupees worth of goods and services were produced in a given period after calculating the input cost and price of raw materials. It also shows how much production took place in a particular area, industry or sector.
If seen from the perspective of national accounting, the figure obtained after removing subsidies and taxes from GDP at the macro level is GVA. If you look at the production front, you will find it to be an item to balance the national accounts.
