NEW DELHI: India's economy is likely to grow by 6.5% in the current and the next financial year, an EY report said, attributing lower than anticipated expansion in the September quarter to a fall in private consumption expenditure and gross fixed capital formation.
Real GDP growth eased to a seven-quarter low of 5.4% in July-September—the second quarter of the current 2024-25 fiscal year.
This was compared to 6.7% in the preceding quarter.
This was primarily because two domestic demand components—private final consumption expenditure and gross fixed capital formation—together accounted for a fall of 1.5 percentage points.
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