Q3 growth to make up for Q2 loss: FM

THE GROWTH SLOWDOWN in the second quarter of the current financial year was not systemic but the result of a lack of public investments during the first quarter, as the administration was busy with the general election, finance minister Nirmala Sitharaman said on Friday.

- FE BUREAU

The third-quarter GDP growth numbers would make up for the loss in Q2, she said.

This is the FM's first statement on growth after the lower-than-expected GDP growth witnessed in Q2 and indicators showing a marked slowing of urban consumption.

After the GDP rose by 5.4% in July-September year-on-year, the lowest in 7 quarters, some analysts feared that FY25 growth may come in below 6.5%. The H1FY25 growth turned out to be 6%, substantially lower than most projections.

On Friday, the Reserve Bank of India lowered its GDP growth forecast to 6.6% from 7.2% projected earlier. It is projecting 6.8% and 7.2% growth in the third and fourth quarters of FY25. The Economic Survey had projected the economy to grow by 6.5%-7% in the current fiscal.