The year-on-year real GDP growth rate has declined significantly to 5.4 percent, down from 8.6 percent in Q3 2023-24, signaling a return to growth levels last seen two years ago. Besides the numbers, the quality of growth has raised concerns about the near-term economic trajectory, the implications for the coordination of monetary and fiscal policies, and adherence to fiscal discipline.
The deceleration is primarily driven by the weakening investment and exports. Gross fixed capital formation, a key measure of investment in fixed assets, has significantly declined from 11.6 percent in Q2 of 2023-24 to just 5.4 percent in Q2 of 2024-25, with half-yearly growth also slowing from 10.1 percent in the first half of 2023-24 to 6.4 percent in the corresponding period of 2024-25. This underscores the waning momentum in capital investments, which are critical for sustained economic expansion.
The stark reversal in import growth further highlights the weakening dynamics. What stood at 11.6 percent in Q2 of 2023-24, has plunged to -2.9 percent in Q2 of 2024-25. This contraction, often reflective of reduced domestic demand and economic activity, adds to the growing concerns about the economy's overall health and trajectory.
Growth in government spending has also lost steam, underscoring a decline in fiscal impetus. In Q2 2023-24, government spending grew 14 percent, but this has dropped sharply to just 4.4 percent in Q2 2024-25.
Denne historien er fra December 06, 2024-utgaven av The New Indian Express Villupuram.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra December 06, 2024-utgaven av The New Indian Express Villupuram.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
L&T chairman announces one-day menstrual leave
LARSEN & TOUBRO (L&T) chairman SN Subrahmanyan on Thursday announced that women employees will now be eligible for one day of menstrual leave.
TDP differs with Stalin formula of 1971 Census as base for delimitation
As Tamil Nadu bats for the 1971 census as the base for any delimitation for the next 30 years, NDA government's key ally, the ruling Telugu Desam Party (TDP) in Andhra Pradesh differs with the proposition, arguing that it will put the state at a disadvantage.
REDEMPTION ARC COMPLETE FOR VARUN
The 33-year-old spinner, despite coming late to the party, has become the star performer
Madurai bench dismisses plea against flagpole removal order
AN appeal against a single judge order, directing the removal of all permanent flagpoles in public places and government lands across the state, was dismissed by the Madurai Bench of the Madras High Court on Thursday.
Sanatana row: SC bars booking of new cases against Udhaya
The Supreme Court on Thursday barred the registration of any new FIRs against Tamil Nadu Deputy Chief Minister Udhayanidhi Stalin over his remarks on Sanatana Dharma, without its prior permission.
TNCC Flays Annamalai's Claims on UPA Govt Allocation
TNCC president K Selvaperunthagai has accused BJP state president K Annamalai of making baseless claims regarding the allocation of funds for Sanskrit and Tamil languages during the UPA regime.
Release all hostages or it's over for you: Trump's last warning to Hamas
White House confirms Don dispatched envoy for unprecedented talks with militant group
Double-murder accused shot at 'in self-defence' near Ettayapuram, held
THE prime suspect in the Mela Nambipuram double-murder case was shot at by the Thoothukudi police, near Ettayapuram, early on Thursday.
All-women team to man PM's security in Gujarat during his March 8 visit
Ahead of Prime Minister Narendra Modi's visit to Gujarat on March 8, International Women's Day, the state is setting a precedent in women-led security.
Liverpool stun PSG, Kane double powers Bayern
LIVERPOOL snatched a late winner to beat Paris Saint-Germain away 1-0 in the first leg of their heavyweight Champions League last-16 tie on Wednesday, while Bayern Munich took charge with a 3-0 win over German rivals Bayer Leverkusen.
