Why is India's GDP Growth Declining?

India's economy has been facing numerous changes and challenges in recent years. As a result, the country's GDP growth has been steadily declining, which is concerning for both the national economy and the stock market.

But what exactly has caused India's GDP growth to hit its lowest level in the past two years? Let's take a closer look.

What's Happening?

India has long been known for its robust economic growth. However, recent data shows that India's GDP growth was just 5.4% for the July-September 2024 quarter, marking the lowest growth since March 2023, compared to 6.7% in the April-June quarter. According to a report by the State Bank of India (SBI), GDP growth is expected to remain below 6.5% for FY25.

Key Reasons for the Decline