India GDP Data: The growth rate of the Indian economy is likely to slow down in the second quarter of the financial year 2024-25. The GDP growth rate in the July-September quarter is estimated to be 6.5 percent, which is the lowest in the last 18 quarters. Due to the rise in the prices of food items, consumption in urban areas has decreased, due to which the pace of economic growth rate is expected to slow down. The possibility is being expressed.
Estimate of 6.5 percent GDP growth rate
The Ministry of Statistics and Program Implementation will announce the GDP data for the second quarter of the current financial year 2024-25 today on Friday, November 29, 2024. Before that, in a poll conducted by Reuters, economists had predicted a GDP growth rate of 6.5 percent in the July-September quarter, which is less than 6.7 percent in the first quarter. Also, it is less than the estimate of 7 percent by the banking sector regulator Reserve Bank of India. If this estimate proves to be true, then this will be the third consecutive quarter when the pace of economic growth rate will be slow. However, despite this, the Indian economy will remain the fastest growing economy in the world.
People are reducing expenses in urban areas!
The Reserve Bank of India has estimated the GDP growth rate to be 7.2 percent for the current financial year, which is less than the 8.2 percent GDP growth rate for 2023-24. Economists said that due to sharp rise in food inflation, expensive loans and low salary increase, people in urban areas have started reducing their household expenditure, which has affected private consumption, which contributes 60 percent to the GDP. However, in the current year, demand is increasing in rural areas as compared to urban areas.
Consumption is decreasing due to inflation
In October 2024, retail inflation has crossed 6 percent and reached 6.21 percent, which is more than the tolerance band of RBI. There has also been a sharp rise in the food inflation rate in the month of October and it has crossed double digits and reached 10.87 percent, which has affected the domestic purchasing power. JP Morgan economist Toshi Jain said, growth has been impacted in recent months due to high frequency indicators such as industrial output, fuel consumption, bank credit growth and weak earnings of corporates. Although there has been an increase in the expenditure by the government, yet the data shows that the pace of growth rate has slowed down. He has estimated the GDP growth rate to be 6.3% to 6.5% in the second quarter.
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